I think you are referring to "cash for keys," be it through a formal rent control method,  or through ad hoc agreements with the tenants (cash and free rent for "x" period of time, etc..).

I hope to find turn key properties but if I can get fixer and upper one for a good deal, I'll get it.

The key is consistency.

If you plan to buy multiple properties a year you will save on commission, it’s another source of revenue,you can bid on multiple properties, it’s leverage to network with other agents, you learn the valuation of property, and most importantly you move on your terms.Having an agent license is very beneficial when starting out and you have a full time job.

They Key is to first have a good team on the ground you can trust, and know that they are capable and have experience in Rehabbing properties to good standard. 

The seller's (Owner's) relative who managed this property is not surrendering the keys to the seller.

The note can be made more marketable by using an RMLO service who can document the file- the seller acts as the underwriter in approving the financing, but they will verify rent and perhaps in this case put together some non-traditional credit sources and income documentation in trying to establish ATP (Ability to Pay)   The seller could potentially sell the note at the closing table (likely around 70% of the Note Value.) 

I haven't even started building yet but I am looking at the exit and trying to see how I can refinance a new construction and wipe out my various sources of funding.  

NOT all of them are bad (there are some great ones out there), but I can see how a turnkey operation where people buy blindly, could be an opportunity for bad operators to take advantage. just read the Morris invest threads to understand your concern on quote un quote turn key.

The key is to find out what matters to your seller and try to work with that in ways that are still advantageous to you.