Here's a quick run down...My father purchased a ranch property back in the last boom.Purchased for about 1.5 Million.It's a horse property and one of the borders had an issue with us and to get back at us sent out Building and Safety.We come to find out that the property was purchased with the idea that all 2000 + Sq ft of residence was legal, we come to find out only 900 + Sq ft is legal, not even the pool is legal.They want us to bring everything up to code and draw up new plans reflecting such.Our realtor says we have a great case and can sue the previous owner, what can happen in this case has anyone ever experienced something like this?

I'm moving on but for the sake of education do I have any options at this point or would I be kicking a dead horse. 

I'm definitely putting the cart before the horse.  

I addressed that, not beating a dead horse here. 

This is like closing the barn door after the horses are gone, but for the other readers who want to prevent this from happing to them, get a signed estoppel from the tenant prior to closing. 

That way, they can dispose of the house without destroying their credit in a foreclosure.If a wholesaler was to come in and steal what little equity the homeowner has, knowing that they're in a desperate situation, that wholesaler should be horse-whipped. 

There is no harm in having another horse in your race.

I'm lucky to have made some good money at my last startup, so I'm hoping to parlay that into a real estate business and avoid the city lifestyle.When I'm not working, I enjoy riding my horse, flying planes and working on my house.

The gist is that all mechanicals must work, except as stated before the AC.I think you need to bring these questions to you lending broker/bank to see what the information is from the horse's mouth so you can go forward confidently and not loose money on inspections that could have been avoided.Best of luck!

I know the topic that I'm inquiring about has probably been addressed and/or beaten with a dead horse but I'm really not trying to allow my fear of the unknown to stop me from jumping in and taking action like I did 10 years ago when the passion for real estate investing took hold of my soul but I feel that there are a few things I need to set up before starting my direct mail campaign. i.e. having certain team members in place such as a closing attorney and an investor-friendly agent for valuation of deals.