One of the specific items that was suggested to be included in the assignment was a clause indemnifying me from any claims/damages/expenses/liabilities that occurred prior to me purchasing the property and the leases being assigned to me.

I started a Walking Tour business (http://www.RichmondTourGuys.com) and I also got a job as an Assistant for a General Contractor that specializes in Historic Restorations (Restoration Builders of Virginia - http://www.RBVAinc.com).

Another factor is by the time you do eventually get the tenants out the damage can be even more excessive then when you purchased.This is a risk with short sales as well which is why if it is tenant occupied banks will discount the price some.

I also would like to recover at least part of my damages for lost rent and for having the property restored. 

No property damage coverage - which means I have the risk of losses in case of any damages.

It is far better to have a unit empty for a month, than to have to evict and repair the damage.

Other examples are fire damaged homes, code violations, recently inherited properties when they live out of state.

There is evidence of water damage.

Water damages can be expensive.

The second property had a similar repair problem at inspection, but this time it was termite damage and sewerline.