If the current owner has awful tenants and a property in disarray, who knows if he has skimped on routine maintenance, leading to a lot of deferred maintenance (which you need to underwrite into your financial modeling).Keep this thread informed as to your progress!

They are referencing California code 1950.5 but that seems applicable only if a tenant satisfies the lease.  

I want to make sure this isn't a scam before we continue with the application. 

Please keep us updated on your progress!

As you progress you may have lots of other options but there are a lot of "seasoned" people that use hard money.  

I think typically you'd provide the laundry machines (if applicable) and a fridge.

So any advice or tools would be greatly appreciated and I will continue to keep everybody posted on BP of my progress. 

Starting to get my forms ready - renter application, etc  I want to have a system in place for this place and future investments.My question is what is the best background and credit report site?

Check the tenant application and payment history and complaint history of the tenants complained of. 

When you decide to move forward with a loan and submit an application, lenders will always run their own report.