Howdy Eager2learn:
Sellers may ask for credit info. They usually do not if they are not owner financing. A person has the right to run a credit report if they are thinking of any sort of business transaction. Pretty broad set of rules. Most sellers do not even know how to go about checking credit reports unless they are a banker etc.
Offer a low amount of earnest money. I usually try $100. Just did a deal where the only counter was to raise the em to $500. Some folks suggest $10 is the right amount but I think it is way too low. Most Realtors will put $500 in the contracts if they are filling out the forms but they will do what you ask too.
You are right about the pre approval letter being required. I even had to get my lender to accept the exceptions on the survey before the offer was accepted by the seller on a recent deal. This is to avoid banks thinking they have a deal and then finding out they are selling to someone who is trying just to flip and could have never closed. Even your average Joe is catching on to this and asking for pre approved buyers.
Any conditions at the property will be your conditions when you buy the property. These include substandard building code violations, notices to board and secure, court orders to demolish the building, health code violations, and the list goes on. All will affect the property and some will even be recorded at the courthouse and a title search will reveal them. The tenants should know if the city inspectors have been called out and what actions have been taken if any.
Hope this helps answer some of your questions.
