She also has low credit score of 500 and a collection for medical bill. 

Escrow really dropped the ball since that lien should've been discovered and resolved prior to buyer giving their landlord 'notice to vacate'.Now Seller is asking for a minimum 30 day extension to try locate lienholder and clear lien however, buyers would have no accommodations to stay in the interim, as their landlord stated they have to be out in 14 days since landlord already filled their vacancy with another tenant and have no other units available.

Apparently the tenant had a room full collection of Nike Air Jordan worth close to $200K.

If so, you may be able to push the rents up and hold on to the tenant and collect the additional cashflow without having to rehab the unit.

Rent it and collect and try to get a mortgage to try to do a kind of Brrrr strategy?

Favorite part…collecting rent!

You will learn the in's and out's of leasing, collections, unit flips, bookkeeping, etc.

What property management software do you all use to send applications, preform background checks, collect rent, etc. ?

The collective Chi of these types of places tend to generate excessive negative Chi.

If they were collecting principal and interest, the interest portion of each payment would be paying ordinary income tax rates.