Often times when a builder/buyer moves too fast, or is too busy and overlooks a key piece of due diligence, the unethical ones will try the "scorched earth" method and blame everyone but themselves, even when they know it was their own mistake, and they'll see if they can scare you, the seller, the title company et al into paying damages/fixing their problem. 

When you patch things for a temporary fix then you tend to have ongoing issues in early future years.

Co-founder of Visio Ltd, operating a real estate investment fund across 48 states dealing in distressed single family homes sourced from financial institutions and sold to fix & flip and buy & hold investors. $100 million equity & debt managed.

But, in the long run you may be better off, as the house I purchased through them in Palm Bay has been a lemon, requiring one fix after another.

For long-term strategies, a cash-out refinance is usually more advantageous, as it preserves ownership and offers fixed terms.To proceed, start with a professional appraisal to confirm the home’s value, compare refinance terms with traditional lenders, and carefully scrutinize shared-equity program terms to ensure they align with your financial goals.

Home could've settled and nothing further to do or you could be seeing a bigger issue at hand that the seller needs to fix.

I'm 42 with a family, financially independent, and doing it right now. 4 of us are sharing 1 bathroom while we slowly fix up this house.

All depends on the interest rate on the primary home and if fixed.

I have seen several offers from operators around the country who are offering interest rates of sub 6% for a 30-year fixed mortgage with a 20% down payment required, NO POINTS.

I also do consulting from time to time to share how leverage and build a profitable holding company or fix/flip entity.