Plus you’re covered legally if sellers don’t properly disclose any major defects.

Husband & I are both working two full-time jobs, saving for a multi-family, planning to purchase in January of 2023.The agent we took a tour with previously tried to sell us on a house that was deemed "Defective" on plumbing, electricity, foundation, flooring, insulation, and everything else.

No real value add, just painted and repaired some small issues(minor drywall defects, a vanity, cleaned) What was the outcome?

The only issues I would advise a seller to definitely fix are items that fall into the material defect category - a leaking roof, an inoperable furnace, active mold growth, active gas leak etc. 

If the house has a defect making it “not a house” get a loan on just the land value as the house has little to no value. 

Unpermitted has to be inspected and new permit signed off or torn down to do a loan in the future when you sell.Unpermitted hints that owners did not care much about rules and other hidden defects arise in time.

You have a title with no defects, and the foreclosure is either a mistake in title chain analysis, or an error in legal interpretation by the plaintiff.  

He'll learn from this and it'll help him see that when you're a lousy landlord, your tenants start noticing every defect and judging every slow response.   

The buyer does their due diligence by ordering the title work, which is done by the title company, who in turn insures that the home’s title is free of clouds or defects such as judgments, liens, bankruptcies, condemnation etc. that would prevent the seller from transferring clear or marketable title to the buyer.

: An agent will point out material defects disclosed by the seller and also anything they see themselves, but beyond that its YOUR responsibility to do your own due diligence.