An LLC is established by state statute, for federal taxes you'll be treated as a disregarded entity (if you're the sole member) or if you have multiple members you'd be treated as a partnership, or you can elect S or C corp treatment. 

If the builder announces a new shopping center and all the area around it is vacant land then the value would likely climb but if a builder announces a water treatment plant and the area around it is residential homes then the value would likely drop. 

I offered $38K, all cash, 5 day closing, no inspection but they had to pay for termite treatment.

Should I just go into one on my own and give it the ol trial by fire treatment?

Getting a treatment and some minor repair is normal. 

Because all hand-up worthy folks get the same treatment, I'm an 'equal opportunity offender' and not getting in trouble.  

I have done that for 15+ years, so 'red flag' is a bad way to describe a business practice that some people don't use (possibly out of ignorance) and for others is (practically) standard practice. 

you cannot take either of those tax treatments with flip properties its ordinary income.

However, the home was "in rem" because prior to this investor acquiring the tax lien and the county had torn down a eye sore home on the property.

Many sewer services have cameras that can show you the problem and what type of system you have.Assuming you are on City sewer, after you have the lines cleared, treat the plumbing with an acid treatment--I use CLEAN SHOT--4x per year.