Just some food for thought as you're going through the motions :) it is absolutely negotiable, before you close the loan. 

I do plan to hold it in an LLC, have good insurance and umbrella as well. 3) Older homes in PS - most of the homes in PS are built in the 40s-50s and for those that own them, do you constantly run into issues with major ticket items - plumbing, electrical, etc (things that are not visible to the naked eye).

I think that, regardless of the deal you have with the seller, the primary lender that you refinance with may not like you having a 0% equity stake in the property, or very tiny equity position of less than 25%, and may require you to reduce or eliminate the "junior lien" or whatever you want to call it that is this seller carry item. 

Honestly, much of the value in home inspection comes from the document created which many buyers receive a copy but are otherwise clueless as to the items often missed in an inspection.

Have done most residential RE items except commercial MF, new development, and sub-to.  

This could be huge, or something like the ADU legislation that came out in 2017 and then revamping in 2020 due to convoluted items that made the building very strict to almost nonexistent.The main reason ADUs are hard to get the best value for now is that the appraisals come in short (depending on the comps in the area of course).

So when you think of the income and basically less than 20k a year in Overhead thats a pretty nice business.. unless you count cloths and shoes as necessary items then things get a little wild !!!

If there is rot and its a more extensive of a job than merely replacing the window that will drive cost as well so you should seek a line item budget from the installers.  

Many buyers, especially first time buyers on low down programs, just don't have the financial capacity to deal with a major item.

Then I would still have to do additional work on kitchen,bathrooms, leak around chimney, garage doors, and other misc items.