Perhaps there just isn't really a good solution at this point in time.

Make the phone ring and give people solutions when THEY realize they need one.  

Welcome.It seems like you've already figured out that the solution to "living in one of the most expensive areas in the country" is to own a property that you live in that also generates rent for you.

Possible solution:  We buy the property, rehab the house, the get the inspection on our own dime...

Dry cabin culture, called "dry" because they have no running water, is a thing in of itself....awesome or horrifying depending on how attached a person is to modern comforts and conveniences. 

Replacing a 40 year old ugly/cracked/corroded/painted over fixture with a modern $10 fixture with a bright LED bulb really improves a hallway or bathroom. 

We began researching our options to cancel the contract .While we were searching on internet a solution, we found several bad reviews about Royal Holidays and we found that we bought into a Timeshare which was basically worthless.We contacted several US attorneys but they told us that they could do nothing for us.

Hi Mark,I interviewed with a few and chose Solutions Real Estate in Gilbert.

Your existing ceilings between units should be 5/8" fire rated drywall suspended from resiliant channel to meet modern fire code.  

By placing the seller at a disadvantage you position yourself to take advantage of the situation.If he does not come back with a solution or lower offer price try lowering your offer by 5K and see what happens.