Cosmetic issues like the one's you explained do not pose an inhabitability concern.

You state that everything is equal but are concerned that not everything is equal...It's very possible to see a price spread like that even with comparable coverage but it's also vitally important you work with someone that has your back to make sure you understand your coverage before you'd have to use it.  

When a seller refuses to pay the commission, then the investors MAY agree to pay up to 3%.I understand that the NAR requirements stipulate at least two forms or documents disclosing buyer agent compensation to both parties.I’m just concerned that we might be in a pickle in this process.

Regarding there being NO EMD- If you sent me a contract and did not put up EMD then as far as I"m concerned, we do not have a binding contract. 

My biggest concern would be the possible damage you can't see and if you only have 3 years of life on it, you'll conceivably be back in this spot again very soon.

Lenders have liability in baiting borrowers, with disclosures, rejecting loans, in giving loans, or collection and servicing requirements, liability concerns are huge compared to real estate, violations carry ten years in prison and/or $100,000.00 fines, you better know what you are doing, and there are many brokers out there running small shops that have little if any compliance awareness.

I do agree 50K EMD for a 340K home is way too high and raises some concern.

A post on recapture:People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

Lawton definitely has its reputation, and you're right about the single-industry concern and the high crime perception, which makes it counterintuitive for many investors.

Generally, I've found that people are more concerned with the content, thoroughness and responsiveness of my emails than what suffix is attached to them.