This time I decided to explain this obvious scenario prior to the official offer/contract; thus rewarding the owner with $100 of my money for the offer, then paying for the inspection. 

The big banks are a nightmare to deal with should any last-minutes issues come up prior to closing

(I will be back and forth between Arizona and Cali (i.e. leave here again prior to next May 1st, before it seriously "heats- up" for six months, until November!)

I have townhouses, but the HOA had been defunct for a while prior to my purchase.

It is nothing compared to a bank process.

It's hard to compare the 2.

If you compare it to a savings account, it looks completely different.The average flip is turning in $20-30k out in under a 6 month hold on 100k-125k investment.  

Normally a duplex in the hood would not cost that much or rent for that much so it’s hard to compare .it looks like you did your analysis correctly .

My question is am I on the hook for the attorney fees related to the collection efforts prior to my obtaining the property?

What keeps us in Canada is a little bit more stable markets compared to there, The fact we know BC very well and what pockets are growing, and that some of our investors will only invest in Canada.