Yes, as @Russell Brazil points out, your logic is flawed.  

Designs are similar to other production builders, but they generally avoid some of the more stupid design flaws that other builders might have in a plan. 

They think the FHA inspection is nit picky and the seller is going to have to fix every tiny flaw, and that just is not true.

Without buying the note, I don't know how I could uncover that info though.)

@Reuven Cohen The data you're working with has to be flawed.

I'm sure the fire Marshall will come if requested to perform an inspection, however they can also uncover various other violations that might require immediate attention and $$$.

Also, the fundamental analysis can be flawed, see Enron. 

Something to consider: if the expert guy doesn't want something, are you willing to uncover and resolve the problems that they don't want to?

Zillow and realtor.com do a great job for a frame of reference - but there are flaws.

But, that didn't uncover their personality for keeping your property in a livable condition for the next tenant.I am unsure if you were making bi-yearly inspection, as that would have certainly raised the red flag that something is amiss.I am sure this expensive lesson will make you think of improvements in your checklist for administering future tenants.Good luck with your future REI activities.