.- another alternative is a gas-fired on-demand water heater (no tank). A

The value of it has dropped by 30% of when the purchased it in 2004 and they mentioned the septic tank as failed, which is expensive to fix. - Based on their credit reports, they have been very good on paying their bills till recently.Current house payment $1100Current revolving debt is $1200 ( misc credit card bills & house equity line, until recently it they were paying on time) He had one rental listed before owning this home and it was good!

On the point of purchase price--I told him the land was worth only $10,000 but he reminded me that the place has the septic tank , a drive way, and has been graded.

When I saw it tank a couple years ago, I looked briefly but agree not a viable option for us.I'm really glad you mentioned Panama, Ecuador and Costa Rica. 

Put in a new HW tank as the old one was only 30 gallons & they said they ran out of hot water.

As far as the water temperature have you checked the settings on the tank ? A

I was once replacing a toilet in a unit because the tank lid cracked and we couldn't find one that fit the tank. A

The sellers bought it as a foreclosure but were aware that the septic had to be changed for other reasons (metal tank as previously used for trailers) so they are agreeing to do a 30K escrow/ credit.

It has a active oil tank as well. 

The one ancillary I check & replace immediately is the expansion tank for the hot water tank as I often find them shot so I replace them to avoid issues.