He will be more knowledgeable than I am on your rights and best approach to collect damages.I should not recommend this and it has some risk (but probably worth the gamble) but if your system fails you could try what the person that sold me the property did and try to ignore the demand to hook to sewer and hope the city never checks. 

Many banks use off-shore title companies that haven’t a clue what their doing and do not speak english fluently.

I am pretty sure it would not even cash flow at 5% ($7,000 down).Now if you thought it would double in price in the next three years, that's a different story, but not one I would gamble on. 

I'd let him be someone else's gamble. 

Account Closed is your VA on-shore of off-shore? 

I was confident enough to offer $10k non refundable upfront as a show of good faith but my partner said that I can go to the casino if I want to gamble :-) Since it is my first property of this size, I listened :-) Also I'm not sure if $10k upfront would have been meaningful.Let's see what happens...Jean

I am not gambling on appreciation, but cash flow talks the talk.

Do they usually allow inspections of the properties prior to a written offer, or is this one of those situations where I'd be expected to do my due diligence at "arms length" (drive-by, internet research etc), and take a gamble on the condition of the property?

Thats simply gambling on a hunch.

you say Your partner/friend knows the neighborhood and the risks and is willing to gamble.