Is this simply a design/architectural flaw or is there a solution to this?  

It might have a huge title flaw or senior lien. 

@Erik Drentlaw I don't see any flaws with your numerical analysis.   80% minus repairs is pretty common for buy and hold in DFW.   

Phillip, I'm hoping home inspection would uncover any such issues.

I would say it depends on just how "move-in ready" you are expecting.If someone is sitting on a property that is in relatively good repair overall, with the exception of some paint, flooring, and minor kitchen updates (countertop replacement/cabinet refinishing) for example, as a result of inheritance or a property that may be more of an afterthought for whatever reason, then perhaps through direct mail you may uncover a handful of decent leads/deals whose owners haven't necessarily yet put the wheels in motion to get rid of a property that they may consider selling once they are given a slight nudge.

I'm 33, it can be done, yet you already are showing me a major flaw that will cause you problems.   

You have to work harder than these people and uncover a diamond in the rough that no one else has come across or pursued yet.

If you get a house under contract, try to sell the contract and are unable to do so,and rather than tell the seller that you claim to have uncovered issues during iinspection, then you are deliberating saying something you know to be untrue.

If not, see if you can uncover any and all reasons why the land might be offered at its current price.  

Might be interested in homes you uncover.