Avg rents in the area indicate that we could get 50% more income but I'm unsure of my assessment.Here are the specs:3 Fam, 8 bed, 4 bath (2 x 3/1 duplex in front + 2/1 flat at the back), 2208 Sq ft, built in 1900 on a 3123 sqft lot.

Does it avoid the due on sale clause - the short answer is YES unless, as Jaysen or Jaron indicated, it is a Fannie or Portfolio lender.  

Unless the company filed a lawsuit, which you haven't mentioned, they no longer have any interest in the property.If they recorded a lis pendens without filing a law suit the penalty against would let her retire in comfort.If they fraudulently filed a lien of some sort but you haven't indicated anything of that nature, again their penalty would be a nice windfall for her.If . . . she thinks that because they had a purchase and sale agreement from some long ago time, she is simply showing that she doesn't understand how things work.Make your offer, open title and escrow, and I'm sure the whole transaction will go smoothly.A title report will reveal anything of concern and a report is usually $50 to $100.

Any of these are potential red flags.Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesDon't provide a scope of work for the propertyCan't provide references of repeat investorsRequire you to close before a tenant is in place

She indicated the Toledo Blade article below as a good summary of why but it sounds like her office served the public in adjusting property values which resulted in aggressive reductions as a result of the crash in real estate values. https://www.toledoblade.com/opinion/columnists/2019/06/07/intervention-might-clarify-lucas-county-property-tax-valuation/stories/20190606104It is only logical that requests to reduce property values will be declining in number and percentage of value, Toledo's values have done exceedingly well over the past few years. 

In my area I recently came across a fourplex that would be a great buy-and-hold investment with minimal rehab costs (numbers found below). 

Purchase price, estimated rehab, approximate ARV, age of property, comps etc(Of course I always recommend buyers due their own due diligence as many wholesalers minimize rehab and stretch ARV).

No student loans and very minimal credit card debt which is on a zero percent with a planned payoff before it jumps up.

The cost is minimal.  

Use someone or a company that is responsible to minimize this risk.I also have my place cleaned as soon as someone checks out so that I am ready for the same day check in or a last minute booking.