This obviously covers the 2% rule.

Thanks Business purpose loans do not require NMLS numbers and are not considered "covered mortgages" by Dodd-Frank. 

I would offer them double their current rent amount, so they have enough to cover a new deposit and have some play money - which is the incentive.

The seller has agreed to sell me the property if I can find funding he is willing to cover down payment with a seller second.

2nd piece is the house hack...We think best course of action would be to have an investor friend we know buy the house in cash, once we are done with renovations, we then take out a full mortgage on the house to cover whatever he paid for it and then pay him back with some interest.

If not, then if you have a complete and revealing walk-through video, along with still pictures, you likely have this landlord where you want them. 

I'll have about 20% of the purchase price in the bank but I will not be putting 20% down, this is saved for minor updates and to cover for unexpected vacancy expenses, I'll be going for an FHA. 

I am looking to find out what end, if any, of the eviction process would be covered by PMs typIcally and what are typical fees associated.

Many people will have different reasons for buying or Not buying a condo as an investment property, my reason is I have a day job that I won't be leaving so this allows me to invest in RE without having to deal with the complexities of Single family properties, the HOA takes care of all the exterior issues, I cover the interior issues. 

Your lease is just one piece of the picture.