If the title and document inspection end up revealing certain things about the property that the seller failed to disclose or that I was provided the wrong info, am I able to back out of the deal?

After that we did a full gut job rehab on the condemned unit including new cabinets, counter tops, appliances, shower, vanity, toilet, light fixtures, plumbing fixtures, refinished the hardwood and put LVP in bathroom/kitchen and finished it up with a fresh coat of paint.

You're generally expecting to eat the cost for shampooing or replacing old carpets, freshly paint the walls, etc.

Then when they reveal something a little personal, nudge them to give you more info. 

People that see our units are very impressed with the cleanliness and freshness of the property. 

In California (& I am told this is state specific but have never had reason to double check that, since I'm a one-state LO), Section 1 of the termite report needs to be cleared for it to go VA.This typically means a freshly fixed up property OR a seller that's willing to make what would be considered a steep concession on a 2-4 unit transaction.

@Handel CarterA few possibilities come to mind, none of them great for you:1) complex owner wants to expand and having that piece of property will keep them within some sort of zoning rule2) complex owner wants to buy your properties and cheaply, and will begin a campaign of targeted actions to wear you down.3) slightly better: their survey (which u have every right to demand) revealed this issue and they are documenting it for any future contingencies.

Subsequent scoping of the main line (and multitudinous other testing) revealed 17 feet of standing water in the main sewer line underneath my property extending under the adjoining property.   

Proper disclosure may, or may not, require revealing that item specifically, it may be up to you to investigate after being given the proper contact/association info.....it varies.

Playing the game is a safe environment where you can have fun, understand the personality of members of your group, (yes the game will reveal some things about your friends), and you can also discuss strategy.