I could just see all the problems with them not wanting to pay for the damages, having lawyers involved, etc.On the other hand, my dad is very big in construction.

There's termites little termite damage.  

I can only assume that there was a sewer backup.Leave it to me to see potential dollar signs in a poop-filled property, but I have a feeling the condition of this condo will weed out much of the competition.My main question, though, is what kind of unforeseen damage can I expect?

You don't want to put yourself in an "all in" position on every deal so when that hit does come, it wipes you out or leaves you with some serious financial damages.

They did see some damage to the backdoor lock, so the police ask me (owner) to stopped by.   

You won't, the listings gent may have to grant them access, but trying to influence them is a waste of time,you'd be the 400th to try, and they're immune to it.

The damage is in two rooms with approximately 350 square feet.

Due to this situation, I am currently searching for REOs or foreclosure properties with minimal damage to invest.Surprisingly, I found one property in a good neighborhood but not in a good location.

Hopefully you have a decent deposit to offset some damage.  

., nearness to freeways, shopping, and other facts that might influence a buyer).