Instead I think what you should consider is asking the seller for some additional time to complete your due diligence and extend the closing date, both far enough out so that you can submit your plans and get your regulatory approvals prior to your deposit going non-refundable.  

@Alexander Schnidt , Since you've already sold the 1031 isn't an option as your intermediary must be in place prior to the closing of the sale. 

Also, in the event there is damage to the premises that the current owner is not aware of, how do I know what the condition of the property was prior to the tenants moving in or if they are trying to recoup their security deposit by claiming that the damage was there prior to the tenants moving in?

I know the DP (dwelling protection) insurance policies are standard landlord insurance but my agent tells me I can also get a Businessowner policy to cover the property (mostly concerned with fire, wind, standard perils). 

There is probably an easy yes or no answer to this, but I can't find it anywhere online or in my Nolo books: if I have repair costs "incurred" prior to me putting a rental into service, but were actually paid with cash after the rental was put into service, do I still capitalize them along with the purchase price and then depreciate? 

I am seeing that people have one large policy that can cover a portfolio and simplify things, would be great to find a broker or company with experience that could set something like that up.

I suspect though banks did not chase too much of it in the melt down prior 

When I was listing and selling property full time, I always advised the seller to get estimates and negotiate a credit to the buyer;  it avoids so much stress, lost time, etc.Of course it is not always possible, depending on the repair--the lender may refuse to close prior to a certain repair being made.But whenever possible, I'd recommend  to credit the buyer and let them deal with it. 

However, the big hurdle has been that most lenders that we have spoken with want to see the retail component of the project at least 50% leased prior to commitment.

I had insurance policy that covered the loss of rent and the HOA cut us a check to renovate it ourselves.