It hasn't failed but the portfolio lenders have all said they require it to be repaired prior to doing an appraisal.I did get the property fairly cheap and the seller said he is under financial strain so selling is a priority for him.

Sale "as is" so what information should I request prior to closing (he wants to close in 2 wks)?

I had a tenant I had to confront on this point and he did not realize I knew about a prior charge which was in the local police log until I mentioned it.

As you may know, FEMA is adding a $250 surcharge to NFIP policies that are not occupied by the owner.

Once you have a portfolio, THEN the cost and effort to maintain an LLC *may* be worth the effort.Be advised, it's $800/yr to keep an LLC in Calif AND the list of members must be filed annually.All the seminars taught the legal entity stuff (usually due to the vested interest in 'helping you') but IMO a good landlord insurance policy + an umbrella policy is sufficient for "well behaved owners".

The reason I say this is because as a seller if you've had a prior inspection and there's a finding you are supposed to update your disclosure     For example, you have a buyer the house gets inspected they find something bad and walk.    

I'm sure they would be happy to provide a copy of the rules and regulations prior to your offer submission.

A short sale is the only way they'll take less money, prior to a foreclosure.

The prior property manager mis-managed them so we've had to temporarily take over.  

If more than (2) you may want to get a commercial line policy, this would save you some $$.