Has anyone else experienced issues when purchasing properties after foreclosure? 

I have first hand experience that @Melanie P's suggestion (cant tag her) does not work.

We went above and beyond for them before them moved out fixing things that I dont believe were normal maintenance issues.  

Of course, there is an issue of where do you live for that period of time to establish that you 1031'ed into another investment property...I agree with @Michael Plaks, I don't know how you figured that savings...As for "...harder to sell to potential buyers," the 1031 transaction is mostly transparent to them. 

The main issue that I have is that the tenant has 2 more years left on the lease and in order for me to fix all the mess in the basement I would have to remove tenant. all plumbing, electrical and structural is potentially dangerous.How do I manage repairs if tenant doesn't want to move?

I am a licensed PA real estate agent and linked to a broker. 

With that said, I've found this the most successful part of the venture in the short period more so than the destination spots.Fortunately, no issues, but it's been a very short amount of time.

@Srini Murthy hopefully it is a non-issue if you pursue this property!

Would there be there any issue with me simply modifying the notice to quit forms to fit the lengths of time stated (30 days and 10 days) in their lease? 

Not sure if the link renders on BP but it is at 28:05 on the video from Global News.