You aren't liable for old wiring so long as it's clearly shown on the seller's disclosure.Older wiring will almost certainly affect the resale value, possibly so much so that a buyer would back out of the purchase after the inspection or request a substantial discount, so it really depends on what your plan is with the property.

I have access to a discounted price.

And provide the applicstion fee as discount from security deposit only if accepted?

I always completely discount landlord reviews if the tenant is currently with them as most landlords will say anything to get rid of a rotten tenant.  

You also get 25% preferred membership discount on what is not covered.

He was able to team up with a builder and get a 30% discount.

Public records might have led me buy a place  a few blocks over or in different part of town, but I am not sure I would have passed up the great deal I got (perhaps discounted due to the bad neighbor)...

So no money now while you're young and can truly enjoy it.So, to me, take the initial hit to get it in current cash. a) The discount you'll get off the properties by buying them now will make up for the taxes/penalties you'll get hit with. i.e.

Plus, hard money makes a purchase much more expensive for you, making it VERY hard to find a property in a good flip area at such a discount.

If you are going to Home Depot make sure that you get in the paint discount program too.