I ran into that problem a few yrs ago.

Consumer debt to income ratio can be a problem,  as can excessive student loans.

If you have no reserves and you hit a problem- a costly problem then you potentially are in default or at worst very stressed and that is not a good place to be and could threaten significantly your future.

Housing affordability is a national problem. A

So far the tropical regions don't seem to have a big problem.  As

That issue could point to a major problem.  A

If you end up paying a little out of pocket, no problem...As far as offer price, try offering $225k and make them say no or counter.

It doesn't take 6 months to figure out this problem, as evidenced by the fact that the inspector figured it out in 10 minutes or however long he was there. 

This poses a serious problem as the incoming tenants have typically given a 30-60 day notice to their previous landlord so they are almost always under a time crunch and may have already made arrangements with moving companies and utility companies.

There are probably gems out there and it’s not a problem as long as the prices keep going up; however, what you’ll pay $200k for here in Pensacola is likely $500-$600k+ there.