Only the detectors in the hallways, common areas, mechanical spaces were hard wired to the system.

If this turnkey is fully rehabbed with many new or near new major items - updated kitchen & bath, roof, mechanicals, flooring, etc and there are a bunch of distressed properties in the area at those lower prices, those aren't true comps.  

A good turnkey property (like the ones provided by the Turnkey companies mentioned above)  should have thorough rehabs with all mechanicals and roofs replaced but you should still hold the reserve.

My Opinion:  I assume this is some sort of mechanic lean they put on the property?  

Insurance doesn't usually cover the break down of mechanical equipment.

Did they fail it because of the closing mechanism?

***You can read and listen to all of the literature you want, but unless you take action, you will not know the real mechanics of what is between phase 1 of a project to phase 2 of a project and all the way to completion.

If I found a property that is currently owned by another investor who purchased the property with a hard money loan to fix it up would I be able to purchase the property from them with a 'subject to' where I would take over the hard money loan payments or use any other creative financing mechanism to purchase the property?  

I was looking for MAINLY cosmetic flips, so no foundation issues and most of the mechanicals in good shape. 

Our cat routinely turned the knobs on our old gas stovetop, which didn't have an adequate locking mechanism (where you have to push and turn).