After arming my self with information in large part from the book (The Multifamily Millionaire) and my prior experience in real estate, I was able to contact and follow up rigorously with the owner of the 5 units.

As long as there are no rental restrictions that explicitly say min 6 month or 12 month rentals, you are most often good to go. 

I have lenders that will originate those, but it will be a 3-5 ARM based on the current Prime rate. 

I also have a lender who has informed me of 3% down on conventional loans and a 5/1 arm loan program .

We are working with the commercial arm of our local bank as we are looking to purchase our first investment property.  

Not sure if this was explicitly addressed, if you had the lease transferred at closing, you are a successor-in-interest to the original Landlord.

. $260M in private capital, something like $3B in real estate done, and have their own nonprofit arm.

You can also JV your way into a different area too2) If you're uncertain about the tenants in a certain area make sure that you're reserves support a longer vacancy period and look for a vacant property, once you acquire the vacant property create a stringent screening process for your tenants to help mitigate risk (you may want to partner with a property manager or another REI in the area for best practices) A stringent screening process is a great way to decrease your chances of tenant issues in the future (also partner with a lawyer to make sure that your lease is explicit in detailing the standards for your property)

In NC, state law explicitly (NCGS 42-46(h)(5)) limits late fee payments to "...the tenant's share of the contract rent only, and the rent subsidy shall not be included."

Others above mentioned property managers and keeping an arms length.