I have some non-finance reasons for buying this house (to provide housing for one of my adult kids), but I'd also like to evaluate the deal on its own merits, so if we don't end up using it for Adult Kid, I will have a good feel for whether this was/is a decent deal from a pure financial position. 

It's much more common for teenagers or just out of college adults, but it happens.

Then skip tracing them then hoping the owner can actually entertain your idea of buying their home.

There's so many items here that she did illegally by not disclosing her relationship to the property as well as entertaining offers after you have the accepted paperwork.

That said, two other considerations:1) Check local laws regarding how many non-related adults can live in the same residential rental. 

I typically do not buy or entertain properties under 6 units. however, this presented itself as a great deal, off-market, brought to me by an agent.

For example, a kid or adult could climb to the window using a bed or dresser and the window is large enough (20" x 24") for them to crawl through easily.When I have homes like yours, I count the basements as "bonus rooms" and tell the renters we can't advertise it as a sleeping area because of the liability.

I have a lot of good ideas on this one but I would entertain your thoughts/comments. (2) The second one I am struggling with...How can a new investor can read a home inspection report and know when a comment/issue is a big deal, requiring serious skills/capital to fix versus just a DIY and a few hundred dollars to correct.Any experienced investors have any tips when they felt overwhelmed reading a home inspection report as a newbie?

They told me 2 of the adults would be room mates and I didn't want to ask any further.

You can ask how many occupants or how many unrelated adults.