If I was buying newco in soil stable challenged areas like Texas I would want this for sure.

They left the unit in very bad shape (holes in walls, cigarette smoke smell, soiling and damage from unauthorized pets, graffiti and intentional damage, unflushed turd and vomit in the toilet, drug paraphernalia and liquor bottles, disgusting furniture and trash left behind, fridge, dishwasher and oven looked like crime scenes, cockroaches in the cabinets, grease down the drain, literally the works).

Basically you own the land underneath. 

@Jessie Niu I have a post somewhere on the forums detailing the entire process, but basically it had to do with a decomissioned oil tank that the bank was unwilling to remove, so we asked them to give us $50k back at closing to assume the risk(We did soil sample tests and other tests), they settled with lowering the purchase price $50k.

We have sandy soil .

What kind of property defects are common, shifting soil?

Two nuggets to remember forever1. research every aspect of a piece of dirt before you buy, zoning, availability of utilities, soil condition, grade, previous land use and a ton more!!

Worst of all, it was ground water--coming up from underneath the slab, and there was no easy way to stop the flooding.Adding insult to injury was the fact that this was the third time in six monthsthe house had flooded.

Ya my insurance policy has "Hazard" as being the most expensive premium and "Liability" underneath that.

3bd, 1.5bath, 1124sqft, on ~.2 acres with 1 car attached, 2 car detached garages (nice selling point given my hobbies)Reno Plan:Home is mostly cosmetic issues. remove popcorn ceilings. remove carpet and refinish hardwoods underneath, bathroom and kitchen updating, landscaping, gutters, trim and paint, and some work on the detached garage (new roof).Doing 90% of the renovation myself as I have done work on homes with my dad in the past. targeting a budget for 15k for materials and any surprises that I need help with.