After getting disclosure, I found that it is REO where an old lady, previous owner refuses to leave the house.

Just got my closing disclosure and was blown away when I saw that the appraisal fee is $1,025.

If there's sufficient interest in your house, the buyers might overlook the issue despite your disclosure.

Many times they're assessed much higher than market value and you can just send your closing disclosure to the tax assessor when you close to get it adjusted.

I understand that disclosure will have to take place in any brokerage but I wonder if a smaller, maybe more investor friendly setting would be a better fit. 

All the disclosures you need are in it; profit  disclosures, assignment disclosures, and one out contingency. 

@Paul Alvarez, Party A was an REO and they did not have a problem with the Double Escrow, I have to legslly include this disclosure in my Escrow Instructions.

Also consider that when you sell the property a seller's disclosure will ask about work you did and whether permits were pulled and inspections were done.

@Jody DavisMany states have promulgated forms used by real estate professionals which contain required required disclosures, etc. and often these forms are available for use by anyone. 

I am looking at a duplex which was built in 1973 and upon reading the seller's disclosures, in the section for the lead based paint disclosure, he stated: All vinyl and aluminum siding construction on concrete slab.