If the owner could sell the house and pay off the mortgage, they probably would have done so already.

He signed the paperwork (as did you) and legally he's responsible for paying it.

I think I have to pay $$$ if a lawyer generates the forms so I don't want to do that.

Then you would get to take a partial exemption tax free. 

If it's standard for the tenant to pay and the property is submetered then no problem.

Also, most of the stuff your list is low cost which is great, but once you start getting the deals and paying yourself back on the direct mail, double and triple those actions too (of course when you to a place financially that you can do that effectively).  

The seller was a foreign landlord who was behind on a few years of taxes, and the property was in C5 condition at the time of initial appraisal.

Our goals: Obtain another investment property while not having to pay anything for a down payment.I envision that my in-laws would use $250k (equity in current house) as a down payment to get into a new smaller location.

They say you are investing in land, but because you are paying $15k for maybe $1,500 in land, you are really investing in the business.If the business fails, you will probably not be able to sell the land -- it's an incredibly small piece of land that is too small to be individually farmed (and therefore tough to individually sell).Vet the business - that's what you are investing in.  

You also are welcome to do your own plumbing, taxes, legal work, electrical work, landscaping, etc.