And as a non-resident foreign national I don't believe you could claim this anyway ( good accountant who works specifically with foreign nationals will be your best friend right now).  

But I'd make sure I could defend myself in small claims court which may be difficult without a lease unless anything you withheld money for is glaringly obvious.

Have you needed to hire an accountant to figure out the ins and outs of claiming your own rent as profit?

But if you're saying that the owner needs to actually be involved throughout the short sale and that the bank won't respect my quit claim deed as owner, then of course I wouldn't want to proceed.

Seller claims to be current with mortgage yet she was given my contact info by a "housing counselor" who stated that she is in pre forclosure.  

Maybe a year from now a tenant will be claiming that blablabla was broken when they moved in, and your property manager will be able to shut that back-and-forth down really quick by showing the tenant that portion of the inspection, potentially saving you lawyer fees. 

Lets see: claim it costs x and it will sell for y.

Claimed vague issues about health concerns.

If they refuse to pay evict and take them to small claims court.

If they make claims about rehab costs, make them provide WRITTEN bids from contractors.