We had an inspection done and it looks to be in great condition, with exception of the water heater and AC unit extending past their useful life (which will be negotiated). 

After discussing my concerns around the current market conditions sorrounding COVID-19 with my agent, she mentioned if I were to cancel the agreement and terminate the contract that in addition to losing my earnest deposit, I would also be liable for buyer and seller broker commissions. 

Still not a big deal but it is in a really nice neighborhood and it's a condition in the rules to keep them clear. 

Should they be bailed out just without condition? 

I feel the real estate agent and GC misled me on the condition of the house.

I have looked into getting non-conforming use permits, conditional use permits, zoning use variance requests, etc. but this process could still be very lengthy and I'm afraid this will open a can of worms that will cause the county to further look into it and raise more issues.My main concern/worry is that when it comes time to refinance the property after the (minor) rehab has been done, lenders may not finance the property on a long-term loan due to a non-conforming use of the property.

Fortunately, when ski conditions are marginal, Killington tends to outperform other New England resorts due to it's massive snow-making operations.

Hard money is used because it is usually a much faster process & also can be used with properties that in the current condition won't qualify for traditional loans.65%-75% of ARV is the typical range but it varies lender to lender.Flippers will use hard money to acquire the property & fix it up to resell.Holders will use hard money to acquire quickly then switch to bank financing to keep it for a rental.There are so many different hard money lenders and guidelines. 

Anytime you can add value and get a better return that’s the game.I try to find properties where roofing and siding are in decent condition.  

Do a move-in inspection report on their room and have them sign it so there is no ambiguity as to the condition of the room when they moved in.