Dont forget the construction defects law, making builders/developers take condo or townhome projects and turn them into apartment/rentals to avoid the inevitable lawsuits.  

That means any weasel clause may not work, you should know your partner wouldn't accept a pink house or obvious defects.

If there is an injury on the property due from failure to cure the defect wihthin the alotted time period set forth by the State you are opening yourself up to personal liability exposure not only from the tenant but also from the property owner.

This can provide the buyer with peace of mind regarding potential appliance or system failures.Seller’s Disclosure: A detailed seller's disclosure statement regarding the condition of the property, including any known defects or issues, should be included.

The list for new builds can be a lot trickier (poor construction/ construction defects, new materials being used that haven't stood the test of time yet, foundation issues from expansive soils or bad concrete being used (harder to know because the damage isn't visible yet), sewer line might be already jacked up or done wrong, windows or roof may not have been flashed properly but water damage isn't visible yet (I've seen new builds where you could literally see daylight coming in through gaps around the windows), grading or drainage issues, truss rise, nail pops, water intrusion, cheap appliances only made to last a few years or poorly installed, dirty ducts from registers not being covered during construction, wood shrinkage cracking the sheetrock, doorframes off/sticking doors and windows, apparently mold and meth may be present already... both old and new require due diligence and an experienced inspector. 

New to Mid life mechanicals in place (Water heater, electric panels, furnaces), no foundation issues (with a condition of accepting damp basements, nature of the typical stack stone foundation popular in the area), no major exterior defects (didn't want to deal with roofing going into winter), rent ready (legally had to accept tenants in place of course).

From fines for non-permitted work, no insurance coverage for unauthorized improvements, to injury/death liabilities for constructive knowledge of defects. 

Certainly helps fill out the history of the property but, you should only bid on at the auction based on the property value and the expenses to cure physical defects or title defects.

Title insurance won't step in just because a defect exists, only if someone tries to use it, so to speak. 

A good wholesaler does not hide any material defects or information known that could potentially dissuade someone from making a purchase.