The slow/no pays also have the most repair issues and problems in my experience.  

Apparently there are title issues and I need a referral to an attorney or title company so I can have her connect with them to resolve the issues? 

Like Landon said, good on him for admitting hit; honesty in a tenant is a very good thing.The only issue, and I don't know enough to speak to it, is if you accept him as a tenant knowing that he has a misdemeanor, is there a way to get into a discriminatory housing situation because you selectively enforced your own rental criteria.  

It looks like you're already in Birmingham, so a quick drive around the neighborhood shouldn't be an issue and can save you a lot of headache in the end.If the Calera property adds up without relying on appreciation, and you have already done due diligence on what the rehab consisted of, who's selling it and what their performance metrics are like (tenant turnover, maintenance rate, occupancy etc) then that is the best of your two current options.

It needs to be spelled out in the purchase agreement.When I inherit tenants I issue a new M2M lease.

I agree with others that anything purchased before the closing date is not your responsibility.I did have one issue with a property I closed on where an existing resident had moved out the day before closing.

Hey Cha, One of my clients ran into a similar well issue around this time last year. 

When I first interviewed(phone) with one of the owners everything looked great and communication didn't seem to be an issue.

Now here comes my issue I have 2-3 clients/ family friends that want to partner with me, they would put all the capital required to do a flip.

Another issue in this market is when you are in competition putting nothing down versus someone who is putting money down or paying cash, someone using a VA loan will probably lose out on that deal.