Contingencies at one time were used just to protect buyers from conditions that were not easily seen at contract signing.

How long have the tenants been there is another question and what is the condition of the place? 

Depending on the number of units, size, and condition, that additional landlord responsibility could result in thousands of dollars in extra repairs and maintenance expenses added to your underwriting.TIP: Do not assume the responsibilities of the landlord and tenant.

If you have confidence she'll leave the property in good condition, let her know the deposit will be returned in full provided it's clean up vacancy.

In current market conditions, it'd rent for around $2400/mo.

If the location, condition, layout are right, you should be able to rent it out pretty quick.

We are trying to do everything 100% legit and are in the process of filing for a conditional use permit.

That means that your construction team won't be very sure what surprises or conditions they’ll face once they start construction.

In case, even if the credit score is lower the investor maybe able to explain the situation to the hard money lender and still get the financing because of the overall deal.Fast turnaroundAs compared to traditional bank loans the hard money loans can close faster and has more flexible with terms and conditions.

If the ask price is at full retail value of the existing condition, I would argue that the seller would be getting too much with that plus equity stake.