I also had an issue with roots growing in the line and it caused a problem with the toilet and sink on the first floor.  

@Jacob Patterson   you could make the case that work caused you to move so you could still take the exemption if you can substantiate that indeed work did make you relocate...

Tenant-Jill files a lawsuit against the company because the broken railing caused Tenant-Jill to break her arm.

Given that they had the house inspected and that I never even had toilet paper in the house after the renovation, it's nearly certain that the issue was caused after the buyer moved in. 

Now my question, I heard from someone that Texas has major soil issues that causes homeowners to redo their foundation after 5-10 years.

It just seems to be "aiding my cause" that they are rule breakers right now.

I'm here to gain knowledge of how to evaluate properties and plan to invest in a property within the next year.My strategy is to buy foreclosed single family homes and rent it out for positive cash flow.Preferably looking out of state cause NYC real estate is hard to achieve that 2% rent rule.All tips/pointers are welcomed!

We already took care of the settling that caused the chimney to pull away from the house.

Since your seller is renting the home they will have the same issues, so you're compounding your potential of legal violations causing the entire arrangement to be tainted.I'd suggest too that you dig deeper in title and the name(s) of your seller as to doing the old finance with a small down, collect payments, foreclose rinse and repeat, illegal practice now, thank God!

Remember a few years ago when they were sure that flu was going to spread and cause death, they were watching every person that went to the ER with a runny nose, and it ended up being nothing.