Won't be your problem, but you can explain it in general if you want.Lastly, don't do a Land Contract or Contract of Deed.  

@Holly Scott outside of the contractor issue - this shouldn't be a huge deal - a roof permit is typically an inspection after completion, so depending on how nice the building dept plays you can probably get an after the fact permit so long as you explain the issue.The contractor not being able to show a permit was pulled is pretty telling.

Do you have some extenuating circumstance that you could not possibly have foreseen, that would explain why you are two months short of upholding a promise you made at the closing table before a notary public? 

@Terence Clark can you explain what cash on cash is maybe give an example and on the 2% rule please?

@Kevin Hunter you mentioned about funding fees, could you explain how that works/calculated?

Explain his tax advantages for owner carry.  

I'm just wondering what would explain this?

Did you walk down the street and knock on everyone's door, introducing yourself, explaining you plan to buy, if they rent& if so how much, and if they can give you any advice on the property?

You may be able to handle this your self by simply calling the IRS and explaining the circumstances.

Can someone explain this please?