Such entity in the ordinary course of its business must be engaged directly in real estate management or development activities.2) Expenses related to the real estate will be paid by the corporation.3) The real estate will not be used for personal use.4) There may be periods of time when the 50% test described in 1(a) above is not satisfied.

There's a massive difference in marginal ordinary income rates (especially in California) on $1M today vs. $60K per year in perpetuity.

The tax payer is listed as the person with the word heirs behind his name.

Would this be something an ordinary inspector would be able to judge or something I can look at and tell by visiting the location?

Get a hold of the seller: mail, phone, door knock.... make contact somehowThe address is on the website under taxpayer addressPhone number is a little trickier, whitepages, intellius, etc... heck I've heard of ppl ever trying facebook.And of course you can stop by in person and bang on the door, leave a note too.I'm local.

There are a couple small things I see, but nothing out of the ordinary for anything you might buy that is pretty new. 

The imputed interest rate rules prevent sellers of capital assets from increasing the selling price to reflect the equivalent of unstated interest on deferred payments which converts ordinary "interest" income into long-term capital gains.

If your in an area where taxes are high, or the maintenance/HOA fees are high - mention in the description that you can give a credit to the buyer for 3, 6 or 12 months of free maintenance or tax payments.

But if it's been a true flip in progress you'll have to pay ordinary income no matter how long you have owned it. 

“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter stated.