Before I get too far down the road with this, I'd appreciate any feedback on possible issues with Option 2 or alternative solutions.

However, the neighborhood has had serious safety issues in the past.

Is anyone able to give me the name of a good public adjuster in the area and a descent insurance company, having waited this long I feel that once the claim issues have been resolved it’s time to move from ASI.

But what I heard from this planner is that this is really just a test and that he feels it's possible -- and likely -- that the city will readdress the issue in a year or less.

In Nevada there is a required sellers disclosure of any issues past or present with the house.

During title search they discovered an old issue with title.

On the issue of whether it's a good idea  ...

Bonus question: Is it best practice to offer at the asking price, even if you discover issues with the property?

take that an no great weather issues and some of the absolute lowest prop tax's no income tax and now a company that can deal with squatters the way they should be dealt with.. 

I STILL live at home and my parents are urging me to get out of the house but I don’t want to make a big financial mistake and purchase something out of emotion.