It is somewhat disadvantage to be a licensed real estate broker as you are held to a higher standard and you have to disclose items you would normally not have to do without license.Whether you list the property on the MSL or not, that is up to the seller.

The only pictures it has are of the exterior and it just looks like a normal house.

I now understand you were looking for the things that normal due diligence might miss.I had a person who bought a property that was in a larger town and there was the air space above the house that was sold so that no one could block another building or sign. 

A hard money loan 12% interest with a 1,2,5 year amort for 25 years with 3-6 points.So what I am saying is take out the hard money if you can not do a normal loan. 

Is it normal for you to wait 1+ weeks to get a unit rented?

Always consider the source.Hateful tenants are generally by nature outside the normal stream of society.

This scenario features a normal FHA loan, but there may also be an opportunity for the seller to hold the mortgage.

I was quote a few insurance options for a $125k sfh rental and I don't know how much insurance  is needed.How much does landlord normally needed to be protected and protect your investment? 

Is the bank bid Normally for the full value of the loan (181k) or is it closer to what they have spent on the reverse mortgage?

Normally, discriminating against the size of a family (as long as it falls within occupancy limits) is a big no-no, against FHA.