If you are risk adverse real estate, (especially out of state) is not for you.

Access to the land may be granted through adverse possession if the current owners have been passing over the neighbor's land for many years.  

Maybe the person paying the taxes is trying to get it under adverse possessionhttp://www.nolo.com/legal-encyclopedia/who-can-claim-property-based-adverse-possession-colorado.html

Some are less risk adverse and want to save more.

Seller further warrants that there is no material or other known defects or facts regarding this property, which would adversely affect the value of said property.

Depends on how long the fence has been there, it might qualify for the "Adverse Possession" or "Squatter's Right" laws.

Everybody has different levels of risk tolerance or risk adversity.

However, I have a feeling that I have chosen a wrong time to get into this business.As a start-up with have very limited resources (I can afford to $170,000.00 in TOTAL project costs*, may be $200,000.00 if I stretch myself too thin and take the extra risks with no reserve capital left for any unpredictable, unknown and adverse occurrences) .

I have some other strategies: Buying partial interests Buying heirs interests in estates Adverse possession and gaining title via quiet title Buying property subject-to Straight Options Buying debt to turn into foreclose-able judgment liens I've done four out of the six above.

I don't want it to substantially adversely affect my refi rate.The other option I thought of is just an unsecured loan or line of credit with my credit union.