The top unit was rehabbed prior to the tenant moving in (end of 2015) and the move in checklist says "new" for everything.

I am very careful to complete my due diligence prior to buying any property.

May be good to include the photos prior to move in and Showing what was damaged.

In this event you are changing the tax payer for the property and when done prior to a sale the IRS has consistently ruled that as a way of accessing profit inappropriately and disallowed the exchange.  

I haven't tried it myself, but I'd go this route prior to starting the reno for my next BRRR.

Do you typically need a management company for the lease years prior to option execution?

John - did the foreclosure process conclude prior to BK filing and only the transfer of deed remained, or did the BK filing precede foreclosure conclusion? 

Also consider some mortgage companies are afraid of the liability & require this to be solved prior to closing.  

You'll have about as much security as limited to proper notice for non-renewal that would require a notice period equal to 30 days given prior to the first of the month.

Prior to the buyer's agent taking the time to educate that listing agent (I'll give you one guess as to why), I wonder how many of her listings had buyers that were turned away who had offered a fair price/terms, that the seller liked, but just wanted one little thing changed like a $450 home warranty, and the buyer ran off when they saw the multiple offer counter-offer form and didn't want to play that game...