The seller can indemnify you against any outstanding issues, but then you could be stuck in a legal battle should something occur.On the other hand, the financial savings can be great though.  

They do constantly battle theft even in some of the better neighborhoods.

From your lack of knowledge in Contract Law and Business Law from your question I recommend to take some private or community college classes regarding those 2 topic unless you already have done so.. or you will learn the " HARD WAY" that could mean a whole bunch of financial loss or court battles that will destroy your " Investor / Loan " plans.

Considering the owner hasn't paid taxes in several years, he probably won't bother with a legal battle.

So I had some battle scars, but what doesn't kill you (quite literally) only makes you stronger, so I would not change it for anything even as I've divested and moved on to better neighborhoods.Here are just some off the top of my head, I'm sure there are many more:- Consistently late rent.

They're noise nazis or plants on the balcony nazis or anti-rental nazis.I owned one for about 3 years and made a profit, but couldn't WAIT to get out from under the HOA, and yes, I even got on the board to try and add some experience/sanity to it, but it was a losing, insane battle. 

Not sweating the small stuff (or holes) and choosing our battles.

However, some battles are not worth the fight - this might be one of them. 

The school of experience is where I've learned the most and unfortunately the bad times teach you way more than the good times, so pay attention and do not be afraid to share your lessons learned with others, they are your battle wounds and they make you stronger and better!!!...

Request the seller and his attorney hire a zoning attorney to battle with the city and obtain a variance to allow the plot to be legalised. 3.