The trick will be in finding the right strategy to match the current market conditions.

Do you have an eviction lawyer?

Mostly doctors and lawyers.

Considering the condition of the house among other things I don't expect that conventional financing would be an option right off the bat.

@Brian Borchers,You should talk to an experience lawyer in your area to get the facts because there is a lot of hype and misleading info on the Internet and you sure don't need bad advice.

You can get very creative with LLCs, but you definitely should not try to draft an LLC Agreement without a lawyer's (and possibly accountant's) help. 

This doesnt really apply to 1-4 unit lending unless if its a local or portfolio lender however mostly applicable to 5+ multi family, commercial, and business lending. 5 C's of lending Character (integrity), Capacity(cash flow or ability to service debt), Collateral (equity in property to secure debt), Capital (networth), and Conditions (economy, and external factors)

The seller's realtor even said he needed to call his lawyer - the contract stated we get the security deposit.

I just stuck with it since the stove was in good condition.

I'm not entirely clear on the question but I'll share my experience/perception generally on lawyers for RE investing.