That will give you a stepped up basis and avoid a ton of taxes.

Beyond that, you'd want to screen them like any other person (credit, income, etc.) and avoid asking questions that may violate the FHA.

I’m trying to secure the title etc.And again, I know this is a tangled web and the correct steps that should’ve been taken to avoid all of the above.

I personally try to avoid cash-out refinancing.... since you've got good income, why not do the first two steps I recommended and then give yourself a bit of time?

I avoid buying any deals with any major negatives to it such as busy streets, near railroad tracks, in airport flight paths, having a large number of stairs to climb from street to front door, commercial unit next to or behind it (unless the play is to convert the usage of course), or any major factor that will hinder your buyers pool With a smaller buyers pool comes less competition for your unit and therefore, typically will make it more difficult to sell (longer hold times) and for less than the model match on a non busy street or without major detrimental factors.This opinion of mine comes from 15 years of experience and making some of these mistakes.

I wouldn't put 20% down to avoid PMI.

You will need a lease with a check at closing to avoid the hit of two mortgages. 

@Russell Brazil, I was hoping the title company’s insurance to cover however the title company is trying to avoid that option, hence looking into alternatives.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

NFIP policy is "transferrable" yes sometimes BUT, However: New buyer has to pay for the policy 30 days in advance of closing to avoid the wait gap.