What you are describing isn't exactly "normal" but it isn't illegal.The listing agent may be able to make a case against the seller that they brought a ready, willing, and able buyer and are due a commission but that's an entirely different issue.

She lived here for 3 years so not sure if new carpet qualifies as normal wear and tear.

If the tenant is still in a valid lease, how does this normally work out (evicting)?

But your situation will depend on your specifics.1st: Virtually any investment strategy you can achieve through normal/direct investing you can achieve through crowdfunding (and achieve similar returns).

Definitely if you were able to get it at the right price, you would make a killing.I have two recommendations:Find a local investor and go in on it 50/50 (A slice of the pie is better than no pie and you are guarenteed to succeed if it is a good deal and you go in with an investor with a track record)Find a different home for you to move into.

Normally someone would need $67K to get into this deal.

you will normally put a max bid on your escalator clause..

I had a property management company I was interviewing once try to convince me that allowing a perspective tenant to view a property without them there was perfectly fine, totally normal, everyone was doing it that way, and since they got a credit card number from them first I was covered.

Normally with a commercial property your tenants expect quick turnaround on repairs (at least mine do).  

Cash Out Refi's have the same occupancy requirements that as normal VA loans.