For example, depreciation is a noncash expense that reduces your net taxable rental income and could possibly result in a net tax loss, effectively making the cash flow "tax-free".As mentioned by others above, you should speak with a CPA to ensure you are maximizing tax deductions and keeping most, if not all, of that cash flow in your pocket.

I did notify the tenants this bathroom renovation would be taking place (via text; will certainly get this signed/agreed upon in the future) and that if their timetable changed on when they would be occupying the property to let me know and I would ensure the renovations would be complete. 

Requiring the pre approval is a way to ensure they are screening out people who aren't able to close a transaction.

Conduct random inspections to ensure tenants are keeping the property in good(ish) condition.4.

Below I have put together a punch list of things you can do whenever you are buying a property out of state to lower your risk level and ensure it's as smooth as possible.Don't buy in the roughest neighborhood in the urban core.

Location and a property in great condition can also help ensure you always have folks knocking on your door.Good luck as you continue your journey!

If they oversaw the remodeling AND they are the PM for the property, they should have ensured everything was in working order.It would have been great if they would have had a general handyman they could have sent out that could have assessed the situation (and lit a pilot light) before engaging a higher skilled (thus more costly) contractor.

Obviously I will do my due diligence to ensure tenants are qualified, but I feel that being in a better area would help to sustain good tenants and healthy rental values.

Any advice for other actions to take to ensure a smooth handover and/or tips on how to encourage current residents to move along so that I can remodel and raise rents besides buying them out?

How do I navigate those conversations to ensure the best deal mutually?