This will be my first rental property, what are the tenants rights, as far as the property changing ownership and the new landlord wanting to attract higher end tenants. 

I think maybe keeping the existing property ownership as is and doing rehab loan then refi.

That gets you around the ownership considerations for the LLCs, since none of your business entities are owned by a human person.Building credit for a business entity so it can get loans without the personal guarantee now becomes your greatest challenge.

It not a rent but they will be something like a confirm future ownership or book the property so i cannot sell it to any other buyer. 

First, you can't access the tenant in-place until title transfers.The length of the existing lease is an issue, but with your new ownership, you can serve notice of non-renewal at lease 60 days prior to the termination date. 

Louis and change the ownership to your company.  

Remember I do have some cushion with a couple hundred thousand but maybe I can work some type of deal where I give him part ownership and after a few properties I can let the income from the properties start to supplement what I'm paying him.

Billy, does the grandfather rule stay in place when ownership changes or does the new owner lose that?

@Josselyne Lugo as Guy stated, if you TAKE ownership you are a principal to the transaction.

Maybe the lure of home-ownership will lure someone enough to pay $375k (or more) probably for more than rent would be.