I received back my inspection report and it detailed out several electrical and plumbing issues that were serious enough to warrant repair prior to closing.  

Many situations could warrant this - as an example, in your area, there are a lot of people in the oil & gas industry.  

I think the rules are just a quick way to qualify and then doing your due diligence. quickly looking over the mls/zillow/whatever, I can qualify the property by using a rule, and then diving in further to then see if it actually is a good deal. eg. looking at 100 houses, I see that most of them are in the 100k range, and will rent out for 1000. but then there is one that is going for 60k and the potential rental rate is 1000. that property warrants a looking into to.

Most banks want to stay away from this.It's what they call a non-warrantable condo.

Hello Cliff Bailey,Your concern for being offered to become a "credit partner" is warranted. 

Maybe I am naive and that $115K premium is truly warranted but it just seems steep to me. 

Non-warrantable condo is portfolio product.

that is the nature of a quit claim you can quit claim any interest you have in a property to another entity .The proper way to do it is to use a title company or attorney and great an warrantable chain of title 

Besides, most reputable sellers rep and warrant each loan is a valid lien in the note sale agreement, along with buyback provisions (and time frames), so if these liens are no longer valid you should still be okay. 

He/she warranted title to the new buyer.