You are paying for the skill at remediation and for their assumption of liability.I think most people familiar with real estate in MA would consider this a common situation and issue, so the experienced parties may be looking at your response as an overreaction or feeling it is on you to have looked at all this more carefully before the offer and inspection.

You could buy the deal with a mortgage assumption or with a Subject-To approach.In general knowing a seller's situation and their motivations can only help you negotiate and/or find creative ways to make a deal work. 

I had to make very few assumptions in my calculator which certainly puts a newbie like myself at ease.

You can get commercial loans under LLC, but they are more expensive, and you will have to offer a personal guarantee anyway.If you want to transfer the title of the property after closing to an LLC, the loan will stay under your name anyway as your lender will not allow for the assumption.

Maybe its my wrong assumption that only people with lower incomes tend to stay in Multi unit properties, I could be totally off base

What are the assumptions they're using to make sure they're adequately capitalized... 

But depending on your other investment options, i.e. buying some stock, you are not getting an apples to apples comparison, since you have to actively work your real estate and don't need to actively work investing in stocks (or at least in the same manner).Now, on to your assumptions: insurance seems a touch light, but not dramatic.  

Don't move forward on the assumption that she can't qualify, she (and you) need to talk with a loan officer who can give you real data on which you can base your decisions.

So is the deal, the assumptions, the track history of the syndicator, whether or not the property was acquired off market, amongst other things. 

I believe it is a fair assumption to make that no person would want to live with feces or carcasses above their head."