If my low ball offer is accepted, and I end up spending a total of $5-7,000 (adding in extra for labor and any surprises)  on repairs, with an estimated monthly income of $650-700 in rent, and yearly taxes at around $1,000 I'm estimating I could make a pretty decent profit, according to my math it would pay itself off in less than 3 years.

@Ori Foyer keep in mind that if you have to pay an attorney approx $250 per hour, you will spend approx $1,000 to get the Seller into court after the payment of court and attorney fees.

@Tomiko Graves the LLC is more for asset protection for most people.

Yeah, I agree, not just building equity right out the gate but the fact that your interest rate is protected in this climate for 15 years is very valuable.

My lawyer seems to now be leaning towards having me pay or file a claim but it is as if he is trying to protect the other lawyer.Whew...I know this is a lot but any help would be appreciated.

I believe this "subject to" is the way I will go as long as I have a good legal contract to protect the seller and myself.

The government protects people from themselves.

Money and Time are both in short supply and I'd very much like the freedom to spend mine as I like.

Otherwise, you will likely be spending more on rent after your sell your house and may not be able to live in a home/area you want due to only being able to rent. 

Also, while you live there you are no longer spending that money to live in a similar unit, thus you have reduced your expenses by 1 unit of rental income.