Seek competent tax and legal advice.

On closing you pay in to escrow the TOTAL cost, which includes the Purchase price and the itemised Rehab cost. 5. on closing the Title company pay the seller his part ie. $55k and keep the the rest for the rehab.6.

Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

I was curious what legal grounds I have to their offer since their notice clearly states the price they are asking for.

A lot of our forms are just to keep us organized and save us time and are not legal in any way.

Just getting the offer in there can at lease hold the other party off on making a decision until they have all the info they want from everyone.  

Pros,  MLS access, networking, save on commissions,Cons  Expensive (around 2.5K for me in Chattanooga), slightly less freedom in deal making because of required disclosures and prohibition on talking to represented parties.  

Are there resources I can look up to see if i can wait and enact new leases that include tenant paying utilties and what legal issues I may encounter there?

But I think there's also a related party issue with the family all being involved. 

All of the above is great advice except for the realtor part. I