I did recently send out a LOI which I will reveal later, but would like to hear any and all thoughts or questions first.

In old homes every wall you open will reveal even more problems than you started with.

A 3rd party knowing that person's name, dob, ssn, where they live (not just what they say, but also their address according to tax returns, photo ID, paystubs, bank statements, etc), what their contact info is, who their spouse is if married, what other associates they might have as revealed  by joint bank accounts, what AKA names appear on their credit report, what OTHER addresses might show up on said credit report (often family members), car loan numbers that can be used to identify model/make/license plate of car to look out for, and so on.

My husband, Marc and I are buyers in a situation where the appraisal came in at our exact offer amount after the appraiser said he could not do the appraisal without seeing our purchase agreement which reveals all of our contingencies etc. including our offer.

@Anthony BeckemeyerWhile either transaction on it's own may not be a prohibited transaction, looking at both transactions could reveal a more problematic intent.

Inspections reveals some needed work.  

The money spent on them has far greater return then trying to sort out which contractor's system will work for your situation.Taking the stuff out of the basement won't likely reveal the problem any better.

A tiny bit of due diligence would have revealed the situation.  

Be productive by reading legal and business papers (they are full of leads),  review expired listings daily (make offers on all expired listings in your investing area) , call for sale by owners, make offers (use a skinny contract of sale, it is easy to read and understand - one page), run ads in local papers and on the internet, look at houses or commercial properties every day, understand and use an APOD (annual property operating data form), this form will reveal the accurate NOI.

They will often reveal what their motivating factor(s) are lack thereof are.