But any company that properly creates and maintains a liquidity sleeve like I described above, is going to be able to honor its commitments. 

Hello, I am looking for advise on the proper steps to purchase an upcoming foreclosure estate property from the executor. 

Also make sure they have proper license and insurance and name you as additional insured for liability.

Let me guess - you never verified if they are a licensed PMC or if they have proper insurance.Do they even have a website with an Owner's & Tenant's portal?

Without proper permits, there’s a chance the city may request you to revert any non-compliant additions (like the extra bathroom) to align with code standards.When it comes to refinancing, banks tend to look closely at the property’s legal compliance.

Like you said, put the proper protections in place but know that you can still lose your money - unless you are in first position.

Are they good with tenant and vendor followup to ensure job has been done and properly?

@Tyler Condon, it isn't proper but people do make side deals where the parties exchange money separate of the closing but at the closing table.

The other thing I often see is that over time, different homeowners/contractors have decided to DYI adjustments to their home aka took out walls, didn't shore things up properly, put in new doors, etc.My point is that what you are seeing is not abnormal for older homes. 

., smoke detectors, proper handrails).