Non-warranty deed from US Rural Housing Service

[Brad Crumpton]

Thinking about buying a home locally that's being offered like this. My wife and I are just getting going into rental properties (only 1 home so far).  

I did a property record search and nothing shows up against the deed since 1998.  At that point, there was a 30-year loan (backed by the US Rural Housing Service) for $62k and a mechanics lien for $13k filed.  It was supposedly foreclosed on late last year.  They're asking $110k and it's worth in the neighborhood of $150k if it's in decent shape (looks decent from the pictures, needs about $5k-$8k worth of rehab).  

I'd like to offer about $105k, put $5k-$10k into it, and then refi at the $150k valuation as a BRRRR property. But the non-warranty deed obviously has us concerned. How much of a risk is it? Thanks in advance for the help.