Employing any number of tactics discussed on the boards (driving for $$$, bandit signs, etc) will help you uncover opportunities to make offers on.

My fear is that I spend the capital doing due diligence, and in this case even more if I need to go above and beyond with this red flag, possibly uncover something that the seller knew about, and walk away, out that capital.

One last thing, in google you can put anything with the word "scam" at the end and if there is any scams that have been reported under that incorporation, person's name or brand/product you will most likely uncover it that way. 

If in fact after all of my due diligence I uncover the property is not the best fit for me presently, I also work with other buyers in this market who will be interested in picking up the property for themselves.  

If you can uncover that reason and incorporate it into your offer, you're showing them far more value than just your offer price.

So nice of them.I had hoped the floor drain would correct for 99% of rainfall situations (we'd had some pretty decent 2"+ rainfalls in the last 6 months), but I now find that was wrong again.

There was a lot of deferred maintenance (subfloor damage, gutters needed replacing, etc)  The more I uncovered things, the more damage I found. 

The only thing that would turn me off of your situation would be the age of the house and the possible problems you could uncover.

However, projects that scratch below the surface may uncover damage that has to be fixed before continuing to the actual planned improvement.  

I did add a little when they uncovered some unplanned repairs (approximately $500 additional).