We've exchanged a few emails and he sounds like a very motivated seller.

Hey biggerpockets, I finally bought my first list to market to motivated sellers, I am mailing only to out of state absentee owners with 60-100 percent equity who own property within 10 miles of my town.

I am going to have to purchase this property using a FHA loan, and am afraid that once I get the Appraisal and Inspection, that they will not Pass this property due to the wiring.There is no way to " Hide " the wires either, since there is nothing to run them behind, I.E. sheetrock .Has anyone ran into this sort of problem , and is there a possibility that I may be fine, and that it will pass for an FHA loan ?

In my parts, the landlord tenant act treats 1-4 unit properties one way....very landlord friendly....and treats 5 unit or more in a much more commercial, landlord is liable for more sort of way.Financing will have to be commercial.  

Katherine, instead of waiting for "available properties" that everyone and their brother and all the real estate investors in NH are looking at, why not do your own marketing for motivated sellers? 

I understand the motivation is to allow the state to have time to attach these funds should there be any type of claim the state can make (i.e., unpaid child support). 

Its so disjointed and inefficient our closings are almost always a cluster with all sorts of last second things being worked on etc..

Most motivated sellers are not going to want to market their property or pay a realtor to market it.

If you do get him talking about the duplex then dig deeper and deeper with open ended questions until you can find a true motivation to sell.

But if you believe that the seller is not motivated to sell the house for less than 60k when the ARV is 65k, you may need to follow your heart and move on from this one unless you happen to know some buyers who are looking for rental properties at that price point.