If it is a warranty deed prepared by a title company and it does not specifically state "This is prepared without examination of Title"  there is little cause for concern over prior owner encumbrances.   

Continuance is even more important if you're not examining the income source.

Having worked at a Title Company for the past several years as a Title examiner, I've seen a lot of the ups and downs when it comes to Sheriff's/Constable's Tax Sales, & Foreclosure Sales in Texas. 

This is not a question that can be answered without examining your financial situation and what you wish to achieve.

Perhaps there is a larger issue here that you should examine.

I am currently taking the required courses to be eligible to take my real estate agent licensing examination.

Hello Family,While actively pursuing real estate investing and working towards the goal of flipping my first house by the end of the year, I took and FAILED the real estate exam in October and have hit sort of a "pity party" phase.

I'll probably take my final course exam in a week to 10 days. 

On the legal advice and real clauses you know you need as an experienced landlord, the best route may be not be either or but both, using the agreement terms you need in your business but getting them professionally examined, too...you know landlording, the attorney knows the law, so you get the best of both there, with the content you want in the right legal format and with no issues with your state laws...2. 

I your situation the seller would have to bring $4,000 plus other closing costs.To know if you should back out would be a matter of examining the numbers and understanding if you can pay them if the seller is unwilling.