We are kind of at a stand still and figured I would try and get some advice here before we seek an attorney.

So keep your tenants happy, and they will tell their friends, who will seek you out!

Although this is great news as  they weren't the easiest people to deal with, there is a lot of work to be done to restore the first floor, and rent out at market rates.I am located in Clifton NJ, and have come onto the BP forum seeking help.

Seeking pleasure comes much later.

What's market cap/return they're seeking?

Be very careful and seek professional legal advice. 

I make sure to include the following at the end, so they know it's not legally binding (which nothing usually is until a contract is signed, but we live in a litigious society so....Scott, if I outline the price in the LOI, does that price meant that is the price I am seeking to purchase the property for?

I am looking to acquire primarily single-family properties as well as provide more value and insights to investors seeking the same strategy (I am an agent fulltime).

If it ends up being too much of a burden I will seek out a property manager (we budgeted for this when we analyzed the property).Overall it's certainly possible to self-manage from a distance. 

If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made.