Ive seen this done and tenants are issued key.

How do we set the LLC up to make sure it's not going to be considered when looking at bankruptcy issues.5.

You can also put an inspection contingency, so you can renegotiate or back out if issues arise during inspection.

The house is liveable and the settlement is more of a cosmetic issue rather than a safety one (for now at least).

@Dave Foster you are a genius at this I can seeI have a similar issue, so a followup to your answer: what if I don't own the entirety of the LLC that owns the 1031 exchange parcel property and is going to have the improvements?

Usually projecting issues they were not prepared for yet.

So if you don't have the work history, it's not an issue. 

Had Insurance thru Mercury a Commercial account with 6  sfr properties and have been canceled because of safety issue . and was fixed but not in the time frame they wanted. and they canceled  me completely. 

We got beat out by other buyers on the deals that worked, we went under contract on 2-3 duplexes and backed out when major issues were discovered during inspections. 

We also tell them when they’re going to get their security deposit back and what requirements they have, which are the requirements that are spelled out in the lease, but we highlight the typical problem issues like cleaning, lightbulbs, cutting the lawn, removing all their possessions,… Etc.