We will assume title is good, initially not an issue to the valuation process.I also assume the parties are not related in any other arrangement or family, which is common.What this seller is looking at is getting their money and bailing out from an expected possible foreclosure.I assume it's marketable without issues.If you can obtain a deed in lieu of foreclosure that would change the picture.Otherwise, after expenses all you get will be the payoff and costs the borrower may be be entitled to amounts paid over that amount, not the note holder.So, there is no profit in the head damage or a clean payoff transaction.Maybe 30-32k range less costs of foreclosure there, if everything makes sense and it's a legal obligation.

It depends on the extent of the foundation damage, the soils the foundations are bearing on, and the remediation program selected.

Trust me, there will always be that lazy or absent-minded person who tries to set the deadbolt to the locked position by the inside thumb latch while door is ajar and then tries to slam it shut; result is damage to doorframe, how severe depends on how solid the frame and how strong and persistent that person is. 

Compliance influences both the vulnerability to flood damage and the cost of NFIP flood insurance.

I can tell many stories of how I have helped people get out from under or at least minimize the damage from buying a property site unseen.

Maybe going forward you could ad something into your leases that describe odor damage and complaints to it??

I keep an umbrella policy but it did not cover the damage. 

.· Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustainssubstantial damage, there is potential for suspension of cash flow distributions;· Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

@Art AllenNot knowing the extent of the damage is the scary part.

I've installed tile backsplashes in an effort to curb the damage and make it easier to clean, but in some cases it's a huge amount of work to clean up.