If you discovered something, bring it up to the seller and ask for a credit/price reduction. 

I Started reading books on real estate investing actually just got fun and it has been growing into something I'm becoming passionate about, I discovered this website about a week ago and it's provided me with tons of knowledge.

@Waylon GatesFollowing are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m) .The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

Plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country.

Hi @James Carpenter, if you are an accredited investor, you can buy into institutional grade $50-125M projects with as little as $100,000 and diversify.

Discover how you can take advantage of these incredible real estate opportunities.Entrepreneur - Real Estate InvestorSpecialties: Wholesale Real Estate Rehabbing in Real EstateREO PropertiesFix & Flip Real EstateBank Owned Real EstateReal Estate TrendsHard Money Lending for Real EstateTransactional Funding for Real EstateReal Estate MarketingDistressed Real Estate Contact me directly for all your real estate investing needs.Specialties: Real Estate Investing, Creative Funding for Real Estate Investments, Cash Flow Analysis for Real Estate, Real Estate Market Trends, Real Estate Business Development and Real Estate Investing Strategy, Real Estate Structuring, Marketing & Sales of Property, Bank Owned Real Estate, REO Properties, Distressed Real Estate Investing, Acquisition of Real Estate at below Market Value, Wholesale Real Estate, Probate Real Estate Investing, Rehabbing Real Estate, Flipping Real Estate

It's completely normal for a title company about to issue a title insurance policy to discover something during their due diligence, that you didn't see when you pulled a title report for the exact same property from the exact same title company. 

They are hands-off, institutional grade real estate investments, and they allow you the option to diversify.

If we accept *and discover no other problems with the property* we will be in for 35k.The returns seem decent still, but I know that this house will probably never be worth more than 35 where it is located, and we would have to do  more work to get it there, so we would have more in the property than its worth.So run away, right?

Is there something easy that could be done being that it is family and not an institution?