It's completely normal for a title company about to issue a title insurance policy to discover something during their due diligence, that you didn't see when you pulled a title report for the exact same property from the exact same title company. 

If we accept *and discover no other problems with the property* we will be in for 35k.The returns seem decent still, but I know that this house will probably never be worth more than 35 where it is located, and we would have to do  more work to get it there, so we would have more in the property than its worth.So run away, right?

We recently not only discovered BiggerPockets, but real estate investing in general.  

well assuming it meets the QM rules for owner occ.. etc.the scenario you presented is not a very attractive note unless the discount was HUGEPV is what investor look at.... what rate of return they want and in notes its usually 8 to 12% APR but with 100% leverage most investors will only pay on face value about 60 to 70% LTV ... so right off the top you would be taking a substantial hair cut.No secret what your trying to do.. but I surmise you will very quickly realize its not realistic .. the discount would be such that it makes it a no go.If your thinking someone will lock up their money for 10 years at 5% well thats not going to happen especially at 100% LTV... 

There's nothing worse then discovering an opportunity to earn six figures on a quick flip (yes, although rare they do exist) and for lack of knowledge having to pass it on to someone else for a lousy $3k referral fee.4.

The super (not so) secret of how to get amazing deals.  

If you haven't already discovered, this is a great place for information and to meet people who are very open to help!

Discover what attracts you and don't be afraid to dive in!

Ask anyone who has owned in this town for long and you will quickly discover how they made hundreds of thousands of dollars and in many cases just by paying their own personal mortgage.

Well I didn't consider it a good deal and it was on the MLS so not much of a secret.