There has been a long-term tenant in place who just vacated and the property is outdated and needs to be rehabbed.

All of them would have an interest in seller financing if the terms are right. 

Hi @Somesh MukherjeeFellow lender here - Not sure where you are in the process but as Matthew said - location is top priority, not just in terms of the tenant pool but depending on the loan program you're seeking (say DSCR), the comps in the area can also impact your appraisal and what rate and term you'll qualify for.

Also if you have any other suggestions as time isn't my buddy at the moment.100% acceptable.

The Agreement also states that he will be subject to the terms and conditions of the Lease Exhibit A while living in the home.I have two concerns:  1) in this type of arrangement, would I be able to evict him if he defaulted on the payments?

B) The pros and cons of having two properties instead of one (especially in terms of liquidity).

You must know your financial metrics and long-term goals!   

currently don't own any property, have no desire to own property. but the renovating to increase rent is a smart long term play!

also are they available for purchase under LLC with individual credit and acceptable DTI?

To maximize its potential, I utilized the property as a short-term rental on Airbnb.