It failed inspection and was red-tagged.My plumber said Plumber C is liable, under law, essentially because of the red-tag.  

The codes, regulations and zoning are prohibitive.

Having a zip code with with million dollar homes right around the corner from war zones doesn't happen in more balanced suburban areas.

There are zoning requirements, which regulate such things as set-back and frontage. 

You don't want a property in a Flood Zone as the Government has not solved the unsolvable problem with the increasing cost of Flood.

Call a commercial realtor in Indianapolis, get someone else's opinion on the offer and the management of the place.. more red flags pop up every time you give more details...

Coming in and raising rent (unless you'd be losing money by not raising) will throw a red flag up and cause tension right away.2.) new lease terms? 

@Zach Mitchell I went back and forth in another thread with @Aaron Tjomsland about this - lots of red flags here, but I'm told his partner (guessing he's the technical guy) will get in touch with me directly.

Would anyone know how to find zoning info on a property in Chicago?

You also have to take into consideration the area - make sure the houses are in the same neighborhood and be zoned to the same schools.