Or maybe I’m just too concrete, kind of thinker.

My response to the seller would depend on the strength of my negotiating position.If it's a property that has been hard to sell, or if the seller is under some kind of pressure, you probably have the upper hand in the negotiations.If that is the case, I would counter, stating that unless they allow you to conduct a full inspection, you are out of the deal. 

Its embarrassing (and unprofessional) to approach someone about solving their foreclosure issue when none exists and these owners won't be very kind when responding to you.

What kind of relationship do you want to have with your tenants?

@Harrison Sharp   Unless your family member is the kind of person that would have a prepayment penalties you should be fine. 

A good title search, not the kind you get from a REO title co., should Definitely have done a “city lien search” which would be a specific inquiry to the city/county Specifically for unrecorded issues like this.

I am thankful for hearing about BP kind of by "chance".

thank you for your all kind response,!

I just kind of figured investors, even friends and family, would want some experience before they would put their own money into it. 

Thanks for all the replies....I think my mistake in the logic and looking at all those sites is just how you kind folks have pointed out..... being  that I won't be a typical homeowner looking to redo a kitchen or bath....so using those remodeling guidelines would be a mistake ......I appreciate the helpBruce