@Robert TylerTake the class and Get your concealed carry permit if you are going to carry a gun.

Many insurance companies will no longer insure a property using oil due to the risk of a leak.

He is asking $500,000 and is open to carrying half through seller financing with half down but I don't know if that's the best option.

IMO its just not worth it.What you could do, and there are some risks if you don't repay it, but more 401K plans have loans available. 

"Is it even legal for an insurance agency to ask if you rent to section 8 tenants assess risk?"

Oh, but don't forget to deduct tax on that).I reckon there are just too many uncertain variables to risk paying (at least) $89k on a home that sold comps say should be worth $99k (if rehabbed to market satisfaction).Looks to me like the "seller" is a wholesaler, looking for a flipper-wannabe to whom $10k seems magical... 

Wait it out, there is no advantage to pushing a judge and risking pi**ing them off.

That being said, it's not something I am willing to risk without a large equity spread and the property would need to at least cover PITI, maintenance, and property management.

If it's not an ironclad legal ROW, you are taking a significant risk. 

Based on the opportunity value of cash and the risk posed by having dead equity at risk to a market shift.All equity in the property is now only earning a return equilivant to the prevailing mortgage interest rates.