Chris, have the property inspected as a newbie in RE, get an appraisal or a BPO at least.When seller financing is offered by an investor, they are usually asking too much, financing doesn't add value to real estate, the other issue is they usually know if there is a financing issue, defects that won't fly conventionally.

His reports have pictures with the defect printed right under it. 

I am not saying that you should not buy these kind of properties, I am saying do your homework and be sure they are a bargain before you bid on them, review the comparable sales, inspect the property for defects and make an estimate of costs to cure.

It is readily available at Home Depot, great colors and realistic wood grain, very durable, low manufacturing defects, and by far the easiest to install.

I say "faster and cleaner" because, unlike an owner-occupant, an investor won't care so much about every little defect and stain in each property.

Find a price where you still love the property and willing to deal with the defects found in the home inspection report.  

Will not disclose KNOWN defects, such as missing kitchen, stolen A/C unit, Chinese Drywall, roof leaks etc, ect.

If the loan program has a CLTV restriction and by putting the Seller's lien on post close you exceed that CLTV, the loan is defective and could trigger acceleration.

Tenant agreesto pay for clearing the drains of any and all stoppages except those, which theplumber who is called to clear the stoppage will attest to in writing, werecaused by defective plumbing, tree roots, or a result of weather. 

Yes they had a disclosure and disclosed a few things with the property, but did not disclose this very crucial defect.