Any expenses you want to claim prior to the day your first rental property is put into service (rent sign in yard) must be claimed as Startup Expenses not operating expenses.

The penalty is generally imposed by the bank, I would ask to see specific terms from the bank prior to accepting the deal [you'll want this during your option period] If you're trying to flip it will be an issue, if you're trying to use as buy&hold it won't matter much

Will my lender and/or title company request this permit prior to closing since this is not a new construction ?

At this point, there is no way for me to prevent my tenants from vacating prior to the expiration of the lease.

For your next BRRRR deal get pre-qualified or pre-approved for the Refinance loan prior to purchasing the property.  

Let's examine the options you have:1) Keep the property: this means you are paying your tenant $80/month to live there while you stress out about fixing the house up constantly.  

Will the bank be entertaining these prior? 

I'll be in Ohio while looking for the properties and hopefully I'll be starting the renovations prior to moving back. 3) Is this type of transaction where the 1031 can be used?

Add a strong guest policy, that guests can only stay so long without prior written permission.

I am currently hoping this tenant's new prospective landlord doesn't call me (most don't) but I will tell them that I wouldn't rent to the tenant again.If at all possible, I talk to the landlord prior to the current one, and I feel they are more likely to tell the truth about a bad tenant.