For future reference to anyone running into these mods......from what I learned, HUD is not allowed to budge on these except under the FHA short sale process.In this situation, the 2nd is not due until the end of the 30-yr loan.

This would allow you to say I own this, which does bla, bla, and bla.From an SEO perspective you could try content marketing your holdings company and segregate the traffic from there.

While I like your property and the asking price seems reasonable, the specific terms of the contract do not allow me room to conduct sufficient due diligence on the property. 

Plus you're allowed to prepay a certain percentage per year so it becomes even less of a factor when considering your loan options.

If you were owner occupying, the Homestyle loans allow a small percentage of the work to be done by the owner on SFRs, but it sounds like you're looking for an investment, so this wouldn't be an option.  

is it the same as smoking in a place that allowed smoking, but telling me she was a non-smoker?

There is a lot here to absorb, but don't allow yourself to get analysis paralysis.

I suspect that the repair to the stucco was not done properly allowing water to get in behind it.

Unfortunately, house hacking isn't much of an option for me, since my primary residence is in a neighborhood that doesn't allow rentals per the HOA.

@Nehemias Ponce  Lending Club and Prosper allow you to bid on partial notes for non secured high interest loans.