I am a cash buyer...been contacted recently by 3 different wholesalers trying to sell me the same property...each one has a different price...not my usual type investment but I went to look because you never know...the first guy didn't have a key so we had to stand on a bucket and climb in the window...in spite of my better judgment I went ahead and said I would take the property at his price...then I get a message that the price he quoted was wrong and it was a "clerical error" and the price is really higher...the other two supposed wholesalers have contacted me about another property without clear title but I want NOTHING to do with them now...they are all working together to sell class D houses...just don't jerk me around...it is not good to piss off cash buyers !

Plus, you likely would not have the legal standing to force the 18 year old to sign the lease and/or evict the other tenant(s) if you suddently found something that "might" have disqualified them at the time of their application. 

Otherwise it is too easy to fold the company, pay out the money to another entity, and all that the lender is left with is a guarantee by a defunct entity.

You can do this deal and get a deed to the house, but I seriously doubt this will stand up once you go to court.

If it's noticed BEFORE closing the buyer should have demanded they will not close until the seller replaces it.You would have had to replace unless they were buying as-is.There is usually a provision int he purchase and sale that says the property will not be materially different from the time you went under contract or the buyer has the right to terminate the agreement and retain all the earnest money.If it happened after the closing then the buyer would most likely file a claim to have it replaced.If you were standing to make a decent amount of money off of this I would just replace it for the buyer and file a claim with your insurance.Otherwise there could be an argument over WHEN it was stolen (before they signed the papers or after)and they might try to sue to get money.No legal advice.

For you seasoned flippers, what are the major items to consider when investing in a home that had a major interior fire, where the structure is still standing?

I just need to stand firm and tell them to read the lease.

And you might not be able to be present for the eviction itself and need someone to possibly stand in for you.

Since I am happy to (literally) go down the street and buy House #1, I am standing firm on it. 

I stand corrected!