Do you have evidence that he would have or should have known that it was broken/leaking?

So in the worst case, I'm living for free.Other variables: It's a 1-acre lot that's zoned for multi-family and has enough leftover space that I could use someday for a triplex or just divide it and sell.New roof in 2019, new hot water heater and HVAC within the last 3 years.The utilities are combined so I'd either have to include it in the rent or work out another solution.I think I can get it at $120,000 with either 15% down on an investor loan or 5% down on a conventional mortgage.Taxes: $950Insurance: $1200I would manage it myself for now.In my various scenarios, I either run $1000 a year for expenses for living in the main house and renting out the MIL suite or up to $3000 a year in expenses for the student rental scenario.

All under the roof you own. 

Seller paid all closing costs, repairs, and new roof on building.

If that’s the case, decide how many units you are comfortable managing with your schedule and consider how you will meet any needs they may have (such as midnight property emergencies like heat going out, plumbing leaks, etc), and find some maintenance and repair people that you trust to handle the big things you cannot do yourself.

Duplex:$75,500Rents-$550 and $700Will need a new roof in a few years.Single Family:$60,500Rent-$915No repairs that I know of.Both will need kitchens updated if tenants ever move out (2 of the 3 have been there for about 6 years, or more).And also, yes having a knowledgeable realtor helps and I have done an extensive amount of research on my own, I just wanted to hear more words of wisdom from everyone out there.

There has also been multiple upgrades on the house such as a New furnace (2017), heat pump (2019), roof (2017), laminate floors (2015) & plumbing (2014).

Although in high rises they usually have a continuous fan on the roof pulling the air from the bath constantly.Remediate the mold in the most effective way and install a better performing fan.Good Luck.

I'm not sure you're calculating everything correctly.Assume about 50% of the income set aside for expenses (taxes, insurance, utilities, maintenance, capital expenditures like the roof, vacancy, etc.)The remaining 50% is applied to your mortgage (principal and interest).Anything left over is your cash flow.Use the BiggerPockets calculator to run the numbers and see if it works.Have you considered a house hack?

If you go in saying ‘I know the kitchen is old, the bathroom probably leaks, etc’ and you’re only looking for major issues, it might make them more interested in your offer.