So the gist of this is that sellers can effectively lie on the seller’s disclosure with no recourse.

.: They signed off on a man who was lying about his cash reserves.

You're probably not intending to be fraudulent, however as the Community Manager here, I feel compelled to inform you that lying on a mortgage application, stating that you intend to use the property in one way when you actually intend to use it in an altogether different way, is mortgage fraud which is a felony punishable by up to $1 million in fines and significant prison time.We recently released an episode of the BiggerPockets Money Podcast with @Jon Lallande, where he gave mortgage tips and we touched on mortgage fraud near the end.

It did not even cross my mind that they could be lying as I immediately went into hospitality and safety instead of a business mindset.

Then, do what makes the most sense financially without getting too much emotions involved, numbers don't lie :) 

I'll say that this style + an interior finish level that matches it will be tough to bring in at this price (approx $178/sq ft) factoring in the lot UNLESS you are locationally agnostic.Zoning, too, will be an issue if you're looking at putting this within city limits, which is one of the reasons my doubts lie in the lot costs. 

Chicken and egg thing..

Tenants start playing cat and mouse game.Will not pick up calls,no response to txt message.IN A NUTSHELL "FORCED US TO FILE FOR EVICTION" LEASE ENDED JUNE 2022..last day of lease tenant txt he is in a horrible accident( which is a lie,as he had asked us in may to extend lease till end of aug) n cant move now.. i said good luck but hand me my keys..

You didn't help your cause any by lying on your listing, so why did you do it?

Did they catch you in a lie because your estimates are only $15k or are there other legitimate hard third party costs that bring it to $172k?