So you might be well-served to have a business accountant review their books, and if they are unwilling to reveal, go elsewhere. 

While a walk through may identify a variety of things, a true home inspection is not that expensive compared to the purchase price and may identify issues that can either save you money (in the form of concessions) or reveal issues that may kill the deal entirely.Restoration deals (i.e. mold, fire damage, etc.) can be very profitable, but you need the right team.

Definitely get an inspection which should reveal plenty you might miss, but hopefully not too much.  

His google search revealed that I was an active member on BP and it further proved my legitimacy.

Well, we finally closed on Friday and now I can do the big reveal on our financial specifics.

Provides buyer with clean preliminary title report from ABC Title.Something smelled fishy, I don't recall what exactly tipped me off, but I called a few local title companies and discovered that pre-escrow had been opened with them revealing clearly clouded title. 

Please tell me if your experience/ due diligence reveals anything different.  

He is an investor so we trust his thoughts, as well as what the inspection report reveals....hopefully not much).

I've been looking serously since June, even got as far as a contract on an REO untll the inspection revealed an additional $10K in repairs, for which the bank was not receptive in a lower price.Basically, my vetting of properties includes taking an avg comp at 65-70% of ARV, to determine if taking a look is even worth it.  

Also be wary of letter of intents as they are not legally binding, specifically as there is a current tenant in place, and I'd imagine you likely will not be able to get a signed contract in place from this potential tenant.If the borrower won't reveal who the tenant is, I think that might be red flag enough to turn this down.Just a thought, in Southern California, there are a lot of tenants who are willing to do this in the marijuana industry.