Can I just sell the house (with the squatters) to someone local that feels like dealing with it?

Check various reviews or get some expert opinions to get a feel on the life of some of these !!!

This goes back to the size and layout of the house—A big house will feel less messy and cluttered than a small house.

What do you feel like you are doing really well these days as an insurance broker?

Feel free to message me if you would like to chat.

In the other hand, we do not feel comfortable buying this home anymore, our goal is to back out without paying a penalty of 2% of the sale price, and of course they are going to try and fight that expense.

Feel free to explore the forum, ask questions, and share your insights.

You could offer them 1/2 or whatever ratio you feel is fair given the circumstances and they can write you a check for that amount to walk away.Another thought, if there is a way you can find out where they are moving, a forwarding address etc, I'd reach out to that new LL or owner and explain the situation to them, I have a feeling the tenant didn't disclose that they have an existing lease as a liability in their financials when the applied, and there may be some application fraud etc at play here that the new LL would likely want to know.Think about this from your own point of view, I doubt if you picked up and left one of your subway locations that the the LL would just let you leave.  

Thanks  Feel free to reach out when you get a deal and close, you are months away. 

Remain dedicated to your objectives and keep learning as you go, regardless of whether your emphasis is home hacking for passive income, using the BRRRR approach to generate wealth, or flipping houses for rapid cash.Please feel free to join in conversations and ask questions on BiggerPockets—the community has a plethora of expertise.