and besides that, there are fixed costs like say, an appraisal...on an investment property which requires a rent survey, that fee alone would be over 1% of a $50,000 loan!  

Do a better market survey next time...

An engineer must sign it, the survey guy signed this one for me. 

Other than that, the usual due diligence stuff: title work, survey, zoning, sewer scope, inspection, estoppels, etc.2.

Lastly, do a survey.

Also do a spot elevation survey to get a true lay of the land.3.

You also need to survey the local regulations on short-term rentals if some were going to go that way and see if the area is for or against them, in general.

Most lenders do not use proposed short term rental income when you have no history on your IRS taxes to show the higher rent, they ask the appraiser to come up with a long term rental survey (you pay for this about and extra $200) and that minus 25% expense ratio is compared to the principle interest tax and insurance payment of the propose purchase plus your total housing PITI as if you drew 100% of the HELOC at the maximum rate plus car, credit cards, student loans etc...You need a lease and a deposit payment banked in your checking before docs.No it is not likely or "believable" that your spouse is buying another owner occupied home unless: you can show you are divorcing thus you need divorce decree and whatever expenses from that mess.

They usually get these figures from management companies that they survey. 

If this was a potential deal I was reviewing and based on the information you provided, this is how I would approach it:1) I would ask that Structural Engineer who performed the inspection of the foundation to issue you, at the Seller's cost, a current HUD Foundation Certification or Foundation Approval Letter which should include a) Distress Analysis and b) Manometer Survey effective January 2015. 2) Since the Owner agreed to bring the Electrical "Up to Code", I would be looking for an Opened/Closed Permit -OR- a completed 3rd Party Electrical Inspection Report to verify the work was completed "To Code".3) If a Pipe Bursted, one has to ask is the Heating System working and are the walls insulated properly and if so then why did the pipe burst.