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. 

How do they handle CX on self-transactions (big issue for you as you plan to be active like I do)?

Bigger discount rate (60-75% of note principal balance) will apply to notes that are: new note, no payment history, low interest rate under 7-8%, long term (over 15 years), paperwork issues (dod frank compliance for ex.), undesirable markets, long foreclosure states, and few others. 

This is like a forced savings where these funds will accumulate until you need to make a Capital Expenditure (roofing, replace hvac, road work, etc).Getting private money lenders at 4% for 6 years is very unrealistic.