Here is the crazy thing, it is leaking only when actively flushing...otherwise the underside of the tank is dry and the tank is full (not a slow leak).

Problem is, this place has pretty bad rot on the exterior wood siding.

The current owner is looking to off load a property they inherited that is in need of some dry-rot repairs that they are not able to afford.I'm thinking I can use it for AirBnB/Vacation Rentals or a typical buy and hold.

The only thing I can think of is to test if the siding is rotted but you should be able to tell just from looking in my humble opinion.

Normally techniques and methods vary, but generally a primer will be applied to the surface and allowed to dry for refinishing the bathtub.

I have taken the beginners course here on BP and read about these RoT and everyone says these are not necessarily the "end all be all" of whether a deal is good or not.Thanks,

Dry wall is not strong enough to support any weight regardless of the type of anchors used.As for repair, dry wall is very simple to repair, go on line and watch a few videos.

I realize that I would have to make the mortgage payment in addition to the LOC payment, so the cash flow would be low, if not negative.I could see this being feasible in a BRRRR scenario, but I think using LOC's on a straight up purchase might be too costly since the only way to pay back the LOC is by milking the cash flow dry.  

Our REO market has dried up , but I had decent success in going straight to the listing agent first and ask them to write our offer or have their co worker rep as buyer agent.

Give it a few days to dry before buttoning everything back up.