The defect exclusion pertains to defects in construction or products you actually build or manufacture and nothing to do with an unrelated product defect. 

In addition, as market rates rise newer loans are closer to the target return thus reducing a need to discount to achieve the desired results which can translate into perhaps less risky assets.  

In addition to studying here on BP you should attend local REI meetings in your area to network with others and build relationships.

Another option you could consider is a product called 100% financing for FTHBs.

And few appear to be knowledgeable about the financial products they own.4.

2) If seller's agent was blowing smoke then walk.3) Don't waste time and emotional energy on it in addition to losing a few bucks.4) Focus on the next deal instead of the misery of this one

In addition, even if they did use meth they may not have done it in the property. 

In addition, for the ones that do make it to the market, owner-occupants face stiff competition from the plethora of investors in the NYC area. 

That way, if anything major is discovered, you'll have time to assess the situation and obtain additional inspections from other specialists as necessary.

I have lived in this area and owned in the Bay View neighborhood also and I think the right product in this location could produce similar rents as the 'hipster' Bay View location.