His agent said he was told he could fight it but I think in the end he has just given up so that's why he fled to another state.I doubt he will try to sell to anyone else, he's a bit mentally unstable but at the same time, I would like to protect my interest in the property if possible, or at a minimum be able to recover my earnest money.

We usually did year-Leases, but since the home has things like older cabinetry and older master bath they keep complaining about and other comments they make, we thought month-month was a good way to protect us if things blow up.  

There is an oridinance that requires the CU report to be issued BEFORE the property is offerred for sale by the bank, but the banks do not follow the ordinance and instead risk the $10K penalty by not complying with this law that is supposed to protect the buyer of a foreclosed home.

I don't think I want or need to allow that as I want to protect myself for any issues identified after they vacate the property.

My questions are what resources do you recommend I use to best educate and protect myself from investors?

I meant, how one can protect (checking title.. leans and etc

Those who care most for you will often give advice which is more protective, as they care about you, instead of beneficial to your financial future or goals.As far as, are you ready, I'd say you are more then ready.

And it would have lower debt to protect you in case of a downturn.

I have learned that I should change my insurance to a landlord policy for protection, but I'm worried that will send a flag to my lender and open a whole can of worms.

If you are new to RE and planning on renting any property in the City of Portland, I'd also recommend spending a considerable amount of time learning the city specific renter protections, and landlord tenant law more generally.