As we started to rip flooring up we uncovered other problems etc. 

After that, you may be subject to other forms of inspections that uncover more.

What I've found is one of the trickier parts of negotiating is uncovering that real reason they are selling.

If you do not insure the LLC for Property Management, there are a lot of situations where you will be uncovered.  

Asking great questions, building rapport and trust with the seller, and uncovering the "why" behind the sale enables you to get past price and explain the situation as it is.

Wholesaling can evolve naturally, because you're not going to be able to take down all the deals you uncover, if you seriously go after the lead generation & deal flow. 

I would advise to explore those issues, uncover their sources, name them and deal with them in a straightforward manner.

Phrasing it that way allows you to just start a conversation and uncover their motivation, or lack thereof.

If your broker agrees, make sure you get it in writing to cover yourself.I won't do anything to ever risk my broker's license and although you may think it's okay, it only takes an audit of your broker's books from the association to uncover this transaction and raise red flags.

If you are growing modestly, you will still uncover the occasional value-add property.