That might motivate the seller to return your funds but it may also work against you, if the judge eventually rules you should have discovered the discrepancy during DD.

The judge could easily rule against you permitting the existing tenant to stay until they find a new place to live (within reason).So especially in your case where you really do not know what was promised, cash for keys saves risk, time, and likely is the cheapest option.Good luck

Outside of the numbers, judging on a feel for the area, I cant seem to connect the dots on a "path of progress" standpoint. 

As they start tearing out the carpet they stop, declaring the place a health hazard due to the blood spatter stains on the plywood flooring.

Anything purely domestically can never get away from a judges actual authority or the US Constitution Full Faith and Credit Clause.

I'm looking into renting out a bedroom with a private bathroom.I've done a price comparison and judging by the location, condition and size of the bedroom the ongoing rental rate should be about $840 (rental prices for bedrooms are absurd in my area).However, that price is not taking into account the private bathroom.

John, but another thing to consider is if you have a single policy for multiple properties, All of your properties will be listed on a single declaration page.

Most likely not and very few JP judges have knowledge in this realm as they are elected officials and there is no requirement to be an attorney. 

It is just the one time if you get the wrong tenant/buyer and judge it could be a real mess. 

I'd be wary of any seller who makes such a declaration.