All it takes is 5 minutes of research to uncover by any realtor with MLS access. 

@Ryan Blake is not wrong, if you get sued, the attorneys and courts will work to uncover the chain of ownership.

If you've found some that seem profitable just make sure you do the due diligence and uncover all of the costs.

They will ask enough questions to uncover the fact that you were transferred and may require proof of such?

If it is set very low, either you are dealing with a seller that doesn't know what they have / the market or they know but there are some issues to uncover. 

It's better to uncover the likely BS on the front end than waste a bunch of time getting it under contract.From there, you can usually build a P&L using industry averages and obtaining old bills from the utility providers.  

When we started to uncover these issues we knew refi'ing with this particular bank would not work for our business plan.  

From a cursory search of Zillow I uncovered multiple homes on the water in your budget.

Inspections will only uncover so much, look for red flags.

If there is something that the appraisal will uncover then you might lose your EMD.