Too many facts and each company will be different based on size of project, single family or multi family, single property or multiple properties, etc.

Thos are serious issues and the more eyes on, the better.BTW, you had a good Home Inspector....Still learning proper lingo, I’m new to the game.

If it is simply the house and the tenant pays all the utilities, I personally would not charge more because you are renting them the house-not based on how many people are living there. 

I'm restarting my real estate investing after being out of the game for about 20 years but am living in Asia right now so am a bit far away to be doing any serious buying and flipping.

However I would not consider them to be truly passive because they do not put any skin into the game like a good passive investment does (via a sizable coinvestment).

You could have a case based on misrepresentation if the seller, acting as an agent, falsely claimed the roof leak was fixed.

Where are based out of?

Ceiling white matte, walls Navajo White eggshell, trim base white semi gloss. 

Best guess of his reason for selling is that he bought it low and during covid, stuffed every unit and room with a tenant on a month to month basis and now wants to sell at the max price based on the comps of the area.

Regardless, you will likely be adjusting the expense base to reflect the tax reassessment (which you can obtain from the local county), insurance (from your insurance broker quote), property management fee, and usual repair/maintenance expenses/admin/advertising/contract services/utilities.