We are obviously having all other inspections done (Engineering, Title V, etc...).

So, if you wanted to sell your 100K house and buy another 100K house that's a better investment - that will probably cost you around $15K in expenses (i.e. money that you burned).  

@Andrew ChallengerOkay, now I see why sub-leasing might be desirable to have: to let someone else burn-off the remaining 3 months.I hadn't considered that the students might want to have their own room without a roommate.

Don't let your rational engineer-type brain get in the way of understanding what other people want and need, and what they'll pay you for it.  

With a local bank they want full recourse forever but you can negotiate say if you bought with three partners that you are only responsible for a certain percentage of recourse and that you want the recourse to burn off completely once a certain LTV is reached. 

Hello you all creative RE craftsman and "transactional engineers"!

And I agree with you that it's not the best deal in the world, however for my first deal the numbers worked well enough that I'm making a small bit of cash and at low risk of getting burned.

Honestly the only way to really know it to have an engineer examine the foundation to see it there is an ongoing issue of if there it's just the norm for the age of home.

I came across this company in researching engineers in the past.

Megabus "rents" space at 24-hour convenience stores and such, to use the parking lot as a place to idle the engine for 30 minutes while passenger load and unload.