But that's why you'll want a title company to handle the transaction - they'll make sure the title is clean.If in doubt, go get a lawyer who knows real estate. 

@Robin Liong  my company handles that area but I also know of several other great companies there as well.

I know that when the Fed raises rates, many people are shut out of purchasing a house because it causes their ratios to no longer support the financing, it also scares home buyers who were affected when their parents lost their homes to foreclosure in the great recession.But, I never tell people this because 1) They can't handle the truth (actually they just won't take the time to learn it) 2) It gives me a tremendous investment edge.

It is a small, and I mean very small percentage of investors who have the skillset to handle lower income type tenants, properties, and locations and make money with it.

I simply have no experience here.Has anyone had a similar experience who can advise on how you handled it?

@Eldrick S.REO agents often handle 10s of homes at a time and sometimes 100 or more.

If you can handle the management yourself on vacation rental I would suggest you buying this property personally, if you do this right it can be very profitable investment.

@Lance MarshallIt all depends on what your cash handling needs will be.   

However, the language in the the first item and the email response does make it appear the seller would be handling at least that first item. 

For anyone that has hired an employee to do your own construction work (1099 or regular) how do you handle contractor liability insurance?