Then you manage the property for a year, at which point you should have sufficient documentation for a bank loan, & pay off the seller-financed loan.

(Disclaimer- this is not meant to be legal advice, I'm not an attorney, jotta, jotta, jotta. lol)

So it's possible that without a heating source the home isn't considered legally habitable and you could be required to not charge rent for those days. 

Bringing the monthly payment down to ~$1650-$1700No plan to currently sell for at least the next 3-5 years, since my brother and father will be residing here.Property 3:Single Family Home (Snellville, GA 30078)Given to me by my father after my mother passed (Legally have not taken possession)Anticipated Rent $1500-$1700/MonthPurchased June 1995 for $100KCurrent Equity 100%Current Comps $150,000 to $180,000Anticipated Repairs $20,000 (Should be repaired by end of April)HOA $0My Questions:I know there is a capital gains exemption (250K or less if you're single, which I currently would be classified as) if you live in a property for two years.

Is that legally valid to do it?  

This IS NOT  a legal notice, Its purpose is simply to get the occupant to call, so we have contact info.

Is there particular/formal documentation we need to provide regarding the transfer of security deposits, rents, agreements, etc?

The report of the apt, as neat and clean and moderate smell of smoke does not rise to the level of damages IMHO, and even considered legal notification.

Start a document that outlines every system in a home and start compiling pricing information based on information from contractors (I used to be a GC and I'd rather give someone a price per SF over the phone rather than visit the property thinking they're ready to work), information from other investors, asking questions online, friends and family that have had work completed on their homes. 

I even offered to keep the document for the community for no charge in order to save money.