I would be more concerned about getting the tenants out.

But the seller is very concerned about liability issues during my due diligence period (i.e., if someone gets injured on the uninsured property).

@Holly NoleKnow I have 500 properties in management so I see this concern often with new accounts.

My primary concern is that with me being out of state I do not know first hand what is going on with my rentals and my PM has lots of "small invoices " that are adding up!

So this is getting long, thank you to anyone who made it this far and I appreciate all opinions, comments and concerns in advance.

Perhaps the L/O idea is a good choice regardless.I'll try to nail my lender down tomorrow, and give the seller a call [she gave my agent her number and I've actually already spoken to her once about some questions I had regarding the Oil Furnace.My only concern regarding the lease was if i have a contract that states a move in date, although the boys will be fine with "whatever"- will their parents?  

Great advice concerning the legalities.

I know I did not go through this with my electric company and they manage to autodraft.....Right now I let them online billpay it into my account (which is no different than cash deposit, as far as I am concerned since they control the amount), pay through Quickbooks (still an ECH I think, and they still have to initiate it is not automatic) or cash deposit.  

If you are using a title company to close, which I hope you are, they will send out a mobile notary for closing or coordinate with a local title company for the seller closing.

The feds are more concerned with their public image and advancing their careers then public welfare.