You have already payed for numerous repairs that should have been his responsibility.

Because you are going to live there pick somewhere that you actually want to live it may sound silly but Google street view is the best resource, City-data.com is good for demographic data and there are numerous websites that show school districts. 

The underwriter is now saying, "well maybe that release was filed in error." 

Looks like you already decided to pass but I'll chip in too-For first time buy I wouldn't go with something that is so slim on margins because then you are slim on errors.

My recommendation is use the course and continue to learn from the numerous online videos provided by both Gene and others in this space.

The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error.

I have a tenant that paid late one time, and it was actually due to a clerical error since she had just moved from PA.

It's called errors and omissions.

Broker may not really know.. depending on how experienced.. but attorney.. if you have that conversation  I would make notes about it. just in case that's and Error and an omission on the attorneys advice  IE it does not mean anything..

There are numerous work around, most require committing fraud when you sign closing docs stating source of funds, no additional loans, etc.