.; outstanding mortgage = $164K @4.5% Fixed 30 year).Property 3: Florida SFR 4/2 (paid $169K, worth $200K; rents for $1300/mo.; own F&C).Properties 1 & 2 were acquired with lease options in place near the height of the RE bubble in '06 and '07.

it will cost more and drag out much longer if the squatter decided to fight.  

I am assuming that they would take % cuts of the outstanding $.

What things should I be looking at during the closing process to make sure of title to the property, outstanding liens, deed problems, etc, etc.I'm looking for any suggestions on anything I should be doing to protect myself during this transaction.

i think a bigger problem is that the property you contracted to buy did not match the legal description If the property had three separate deeds and was not one parcel that might be a big  legal out on your contract  ( i am not a lawyer) Legal fees can be quite expensive so I hope your deposit is large enough to fight for .The sellers cannot sell there property while in escrow which might give you some leverage

I have high aspirations and I have set a goal to have completed two deals befor the Mcgregor-Aldo fight and go to Vegas and watch it.

There are a lot of investors fighting for the smaller number of deals, however if you market and network I'm sure a deal will find you.

After the fight you've put up, you'll do great!

I was sure they'd all be fighting for a chance to provide a mortgage for me (ha!).

I know that the property previously sold for $200K+ in 07 08 if I remember correctly so I would imagine that the outstanding balance would be significantly more than $85K.