An agreement to accept this money negating any potential interest owed would more than likely remedy that issue should any court ask about it.

I just finished purchasing my next project at the court house steps and will get started with the rehab soon.

Failure to declare = FRAUD!

Carpet and paint, and most of the appliances are fully depreciated and only the items aggravated by failure to report them can be justified in court.

There are too many stories of tenants hurting themselves, and the landlord getting sued for a lot.You brought up a valid point that there's a possibility that tenants may not declare an issue to avoid having to pay for it out of pocket and could escalate into a major problem.

Willie Webb File in small claims court.

Third, since this whole transaction isn't through a typical bank, is it possible the original seller can come back and want the house back and possibly tie you up in court proceedings about who "owns" the home? 

New York Life declared the highest dividend at 6.7% and after fees, my growth came out to 4.5%.

People and the Courts think landlords are rich exploiters of those that rent from them.

I started a wholesaling group and spend my Saturday mornings with them.I am looking for my next purchase at the court house steps, while I am working on a few more.