Until they issue the discharge and waive their right of redemption, they can redeem.  

Another issue is I intend to put 5% down.

As they settled in and started expanding their family quality issues arose as did the lack of space.

The types of tenants who would pay more rent to live in an A building won't put up with the crime and safety issues of a C- 'hood.

Both tenants are on the lease (were a couple but now are separated due to serious issues involving the Police) and have stable jobs.

They can probably force the issue.

Sounds like a good plan, just remember real estate is a long term path and your thinking on the right one.Might close on the new house so you won't have issues with improvements being made, you'll want those expenses to be depreciated as an investment property.

Here are the issues with the property.  

However, the reinstatement with the bank and immediate sale may cause issues.  

Colorado mandates asbestos and lead testing before any type of suspect material is removed. i can answer any questions you have in regards to asbestos abatement and lead remediation. message me if you want to chat about possible solutions to the asbestos and lead issues id be glad to share my knowledge with you.