There's no issue with WalMart paint, other than it doesn't have the coverage, longevity and scrubability properties that higher quality paints possess. 

Has your pm reached out to the tenant to see what it would take for them to return possession of the property and just leave?

If I understand the cash out refinance answer is - it can't be done until you rent the house for 6 months, or is it that you must have possession the house for 6 months? 

I'm curious how you've avoided having the banks calling the note, once they realize that the original lendee is no longer in possession of the property?

Yes, people got foreclosed on, but the banks got swamped and were often reluctant/unable to physically take possession of all those properties, so many folks just stayed in place and paid nothing.

I already spoke to a lawyer and went through the standard process of giving tenants written/verbal notice to pay by XXX date or lose rights to possession of property. 

Unfortunately, not all individuals possess the resources needed to acquire these important needs.

So, I was wondering if there were any exceptions to this rule given that I'm not able to take possession of the premises due to the leases currently in place. 

I'd need a downpayment, but I have investments I could pull from (not ideal but possible) that I could leverage for that.What I'm mostly wondering at this point is if I should consider a better way to structure this to minimize transfer costs in 2 years when it's time for him to take full possession.

@Brandon V. the moment they notified you they were out, you can take possession of the unit.