When the ideal property hits the market have your agent run comps, have them walk the property virtually highlighting potential defects with the home, and craft your offer based upon what you know.

Shower and bathroom sink defective and in bad shape.All carpeting replacement (or refinish hardwood underneath. 

Insurance is expensive for residential contractors due to the number of claims that can arise out of a construction defect.

Even so, your friend didn't have to buy the house due to some sort of title defect. 

That will give you the process and cost to cure the defect for the physical property.

@Brian Frazier I think the only recourse you have would be proof that they hid the defects.

I would be prepared to have access to funds for repairs and proper maintenance on this property.Here are some items I would look into and see if they are a good fit for you:Write your offer with an inspection clause and study the report of the property to see if there are any more defects that you have not noticed and that maybe deal breakers.Get a copy of the current leasesGet some sort of income verification of these rents.

(There has been no suggestion that you failed to disclose latent defects.)This is a bigger problem for the buyer’s broker.

Your insurance company might not cover any defects as a result of the unpermitted addition.I would suggest you give the City a call and talk with them about your situation. 

This does not mean excuse major big dollar problems and defects as those should always be weighed in with the most utmost importance in the buying decision.