I had pointed this out to the seller as on their Wisconsin seller's condition report that had checked "No" to the question worded "Are you aware of defects in any structure on the property?" 

However, the most common reason an investor dumps a property mid-construction is discovery of a latent defect. 

Nobody would want to be an inspector if they were always getting sued for every defect in every property (no property is perfect after all). 

Also, there are always construction defects that need to be ironed out.Consider buying in a class A established neighborhood in a building that has been around for 10 years plus with a strong reserve.

But so are the mental defectives who buy lottery tickets and pull the handles of slot machines.

Even as people defect back to hotels, some will stay with short term rentals as they value the experience, private parking and larger living space. 

The seller will have to either fix it, negotiate a reduced price and then you do it yourself, offer a seller credit to fund the fix, have the knowledge of a foundation issue making the property harder to sell because now they have to disclose knowledge of the defect to other buyers (and possibly the lender) after you, or sell the property AS-IS and risk losing value.  

Hi BP friends, a fellow investor of mine who built a commercial residential building had numerous issues, delays and defects in working with the GC firm who developed it.

The inspectors summary did not disclose any defect’s on the roof and the seller is stating they never lived here so they were not aware.  

I think you'd be surprised how many times an obvious defect is ignored by a title agent so as not to upset their good client the wholesaler.