I disagree with previous answers.If the tenant owed money to the previous Landlord, that's for them to work out.The issue at hand is something different.

If there is debt on the property, I'm not sure how that would transfer title, etc.

On the one hand you can see that on the day the transaction was completed they got all The money that was due to them based on the facts of that point, going forward they are not the owners of the house anymore so if we got a tax credit or a tax increase it does not really concern them, on the other hand you could say that they took the effort to do this and since that credit was applied to the year they sold the house they should have a prorated amount based on the months they lived in this house.The second question is why didn't the sellers lawyer contact us directly, as the lawyer we used for the transaction is not really working for us on a regular basis and is not our regular counsellor.

Seller wants to close on the house without transferring the keys to me during the close and suggested that I change the locks as soon as I close. 

Initially they were buying large portfolios of properties and unloading them - getting them off the banks hands more quickly at a discount. 

There are those who purchase in their own name, then transfer to an LLC, not caring about the due-on-sale clause issue. 

His young son's got a "work station" at his shop and is his "right hand man". 

I am very hands on about plumbing and electric, but won't do roofing or major drywall like a room gut. 

I was watching American Greed and it occurred to me that some things aren’t pure black and white but things get out of hand quick.

This will actually give you some room to make a profit.  10% of the ARV is already allocated to selling costs (realtor commissions, closing costs, and property transfer taxes), another 10% will be towards your financing costs and holding costs, and then you'll have 10% leftover in profits.