Don't settle for a "good deal", rather find the seller's pain, amplify it and offer to resolve it.While you're keep your finger on the pulse of one motivated seller, go find another then another and another.

Two potential issues I'd need to resolve...my 401k/IRA wouldn't be enough by itself to purchase the property and there are IRA contribution limits. 2) I don't really like the idea of not taking the profits but I could always refinance later?

If you purchase a property with any potential code violations (a colleague of mine was cited by the inspector for gutters not being cleaned out), ensure they're resolved by the seller or prior to renting the property. 

Granted, I don't foresee a judge holding it against you if it helped resolve a serious issue.  

@Lucas Farrow @Henri Meli is absolutely correct that you should attempt to resolve this issue with the current owner on an amicable basis.

Right now banks are dealing with regulators and non-performing crud on the books where they have to resolve these legacy loans.When they get through most of that in the coming years and interest rates rise they will then shift their attention to calling these loans due as the property value is most likely higher and they can get higher interest rate money.Right now if they are paying regardless of outside agreements many banks are ignoring all of that....

Keep moving forward, resolve the issues and carry out your plan to rent the property.

Demonstrate that you made a good faith effort in trying to resolve the issue with the tenant.

This 14-day window allows us a reasonable amount of time to resolve any issues with the seller or title of the property while still maintaining our and our buyer's interest in the transaction.II.

In order to resolve this issue and not miss opportunities, my husband and I are focusing in partnerships with other couples in Philadelphia who have similar goals.