Just pay very close attention to the legal steps/requirements to evict in your State, or else the tenant may win on a minor technicality and you have to start all over.You can always wait for the Lease to expire then give proper notice that you will NOT be renewing the Lease. 

My concern is that the funds are exact (tax protected account) and I couldn’t add more easily so there isn’t much if something goes sideways.

I was bidding on them at auction simultaneously and ended up winning both.

If they are professional, they can explain this quickly and easily.

Sound like a win to me.

I think it’s a win-win since they will make 10% on the rehab, I get to be more hands off and they will get to manage the property at the end of the rehab.

A tool I have communicated to the cleaners I ultimately did not hire was to ask them if they would be interested in working on an "emergency" basis just in case my new hires are not reliable... they like this opportunity and will likely make it a point to deliver as a chance to win business.

If you are going to purchase the house as a primary residence you can easily allow them to rent-back for up to 60 days and if it's going to be a rental then they can just be your first tenants.

If they are professional, they can explain this quickly and easily.

@James M Fario a no money down deal sounds like a win!