If the current real estate market is stacked with inventory and a seller wants or needs to move a property soon, then the seller needs to be aware of every tool that's available.Occasionally interest rates are too high and sellers need to help offset those high rates.

Make friends with a local person who is not a part of the deal, has no money to make in selling you anything to get another view of  the area.IT is hard to collect rent in a war zone. 

Often, there are additional liens, judgements, and encumbrances on the property that the home owner hasn’t disclosed or is himself not aware of.

I wasn't aware of this regulation.The HOA is asking me to replace the hardwood with a wall-to-wall carpet.

It is important that you are well aware of the lending environment when putting out offers and your ability as a borrower to be qualified.

If you do that you should be aware, and informed on what the "due on Sale" clause could potentially mean. 

To answer your original questions, though, there is nothing wrong with that market as far as I'm aware. 

So I am finally venturing into home rehab and re-sell this year, besides the obvious financial analysis (ROI, ARV, rehab costs etc.) what are a good list of "unexpected" issues to be aware of to improve my due diligence?

And you did it the right way...something is on paper, the bank is aware and you have some time to the balloon payment.

Thanks Basit,I must have forgotten to turn on notifications for this account as I wasn't made aware of any responses till now.