Seller must provide an up-to-date lease agreement of every tenant (no month to month or handshake agreement)Seller must provide last 12 months of rent rolls (showing that every tenant is paying on time/no deadbeat tenant)If there is a security deposit, it needs to be signed over to the buyer at closing (so that the renter isn't required to pay another security deposit to start a lease with you)Is there a Property Management in place?

While they may not be super interesting to most retail buyers, they make for good rental properties oftentimes.  

Is it wise to start an LLC in a state like NV or WY to own the PA LLC for better asset protection?

After doing research and educating myself on this method, I found the sellers are the hardest ones to find, not so much the buyers.

A house is only worth what a buyer is willing to pay for it .  

Please search for E2 visa for example , or the EB5 programGenerally speaking - money and real estate don't guarantee anything immigration wise , but they all play a big factor if you do it correctly

Get very familiar with the eviction process in your market and follow things to the letter and quickly.Make sure to vet tenants thoroughly and pick wisely (and even then it is a gamble). 

The new buyers were either shifting lots cash from some place else and were not worried about returns vs. asking price,   or are expecting to get around $2K per unit in a seattle suburb.  

I'm assuming the house is furnished being a model home and that the builder is "renting" it for purposes of showing the house to prospective buyers in that development.If the above is correct it's possible the buyers could insure the house as a vacant property.I think an attorney should write up something for both parties to sign showing the builder assumes liability while showing the home.

This is not true - if you're going to represent buyers or sellers you have to have a license, but if you're going to be successful with Real Estate investing, you will be successful either with or without a license.