I will likely just adjust the offer to cover the $ amount the seller would receive in rent.There are two factors that concern me in the potential difficulty in getting the tenants to vacate the property, 1 is they are paying very cheap rent for the stats of the home and 2 the grow room obviously was constructed with considerable effort which I anticipate may influence them to dig their heels in and potentially squat illegally. 

Market value, what the mortgage originally was for (which was $254K I think)So if nobody is willing to bid that amount they take it back and try REO because of more potential clients, right?  

And although our numbers are up, it still takes an excessive amount of work to find these opportunities on a consistent basis.Anytime I'm in a rut in my quest for deals, I always remember that thing my parents told me, that so many other kids heard from their parents growing up too: "It's not what you know, it's who you know."

I just need something as simple as paypal but with better control from my end on the amount that tenants pay.

It's an irrelevant amount of money.Whenever you are buying a property out of state you should do a few things to ensure it's as smooth, easy & low risk as possible.

High rent in the neighborhood is 1300, house would need 10k of work to get it to that number so the lease has been drawn up for 1100/month,Most things are new and roof is a few years old so i'm ok with this rent amount for the first year, mostly because id rather work on the stuff at my land than this house.  

Depends on the kind of neighbor you want to be. 1) Play hard ball and wait until you get a small claims court summons, then offer to settle for cash (for that small amount I wouldn't get insurance envolved) 2) Offer to pay all or part of the cost of repair to make it go away.

What is the reccomended amount of cash reserves required outside your closing costs and deposit?

@Nathan Letourneau you've over-complicated it and put yourself at risk.Let's say you increase the rent $750 a month for a year to account for the cost but the tenant pays the entire amount up front.

Recently, I scaled back the amount I'm investing to have some capital to put into an investment property.