I always reply I have time to meet you at the office with your track record, credit score , pof and willing to sign an agreement. 

Is it recorded on the balance sheet?

You can file something in the land records as evidence of your contract to cloud the title.

The small 2 bedroom 650 square foot home is nowhere to be found in the city records, yet has been around for 50+ years, and used as a rental property at the rear of the property, behind the primary house.  

Trying to determine the best way to negotiate the property because I believe he still has a mortgage on it I don't see a discharge of the mortgage in the records, but that also brings up a question for me as to how can I offer a lower amount of the property than what he owes on it.

But yes, I'm paying more than market value based on County Records.

It marks their record and could help another landlord avoid a terrible tenant if they do prober screening and check the court records. 2.

I would review the local building department records and ask around a bit down there.

Include in that a visit to see for yourself, and make sure you are working with a property management that has an excellent record.

Interesting, I believe when selling a property we are at the mercy of comps.Example on Market Value VS Comps:My Home, Market Value is $160k based off County Records.