In addition, the federal government at the time would even give away land for free.  

2) If seller's agent was blowing smoke then walk.3) Don't waste time and emotional energy on it in addition to losing a few bucks.4) Focus on the next deal instead of the misery of this one

In addition, even if they did use meth they may not have done it in the property. 

My group does about 200 discounted wholesale properties a year.We use the auction method of markerting.

In addition, for the ones that do make it to the market, owner-occupants face stiff competition from the plethora of investors in the NYC area. 

The median Sales price in Tempe is 242k and I'm getting the house at a 20% discount.

The way we look at it, if hard money can enable us to purchase additional properties more easily or with less of our own cash, then it can make sense.At this time we are actively looking for our third buy/hold.

@Risa Hind I'd like to second what @Ken Badziak has said (and of course I always like a guy that BP's with a glass of wine in hand ;) I would like to point out, however, that in addition to all the taxation issues you have the issue of reserves to consider.

It was completely rehabbed with an additional  $150k.  

It was originally a duplex, but additional rooms were added.