If that's true I would be concerned.They "requested", meaning you don't have to add this - true?

@Troy Luster, you mean added to the deed along with the current owner?

Just because there's an apartment up there, doesn't mean it can be legally rented.

So I have a pretty good idea on repair and renovation costs, but they are NOT perfect by any means.

Holly New Jersey and a new town means new opportunities and beginnings!

(What I mean by the "1% Rule" is: 1% gross rent per month obtainable on its CURRENT value - not what was paid).I wouldn't worry that "the banks don't like me buying another primary residence and buying "down in square footage"", UNLESS they they forbid you to follow that path.

This helps her understand that it means a lot to me to do it but also that I'm willing to not move forward.

Unless they mean that they are not sure about the exact expenses for the property.

In the mean time , I am a school teacher with a lump of about 20-25 k and would any help or connections in the Houston area .Thanks,Corey Prevost 

The roof looks to be in good shape which means it could be new, at least a lot newer than the house.