The seller wants assurances that I would not kick out the tenant (currently on a month to month lease). 

Cross border tax compliance isn't something I say is DIY-able.

Before the case, if landlords were in compliance with certain parts of the Lead Paint Act, they could offer $17,000 to a tenant who had been poisoned by lead.

., and as sure as night follows day that means equally BIG taxation to follow, because the $$$ tree is the working class, not sure why 50%+ of population has a disconnect on this fact. 

I spoke to a demo contractor and they estimated that demolition of the interior could be anywhere from $60k-$100k and could be as much as $200k if there are environmental issues (Asbestos) which there assuredly are.

If someone is untruthful they may not fill out the application if they are assured it will expose them.

As a rule of thumb, LLC formation and compliance costs are quite high (as it seems you know). 

However, getting the assurance that everything is done within the bid to EPA standards is definately something I'll add to my list.

Assure them that you will explain to potential tenants that they are in the process of moving and will have a bit of disorganization going on in the house as they pack, but you hope to get as much cooperation and enthusiasm about the property and you as a landlord shared with potential tenants during the showings.

If it is older and in bad condition vinyl siding might simplify lead compliance so you dont have to deal with exterior painting anymore.