Once I determine the zoning, do I need to order a Phase I Environmental Report?

You'll probably need environmental studies.

I contacted EPA Environmental ( private contractor) to remove the oil tank.

@John PuI'll try to answer some of your questions here.1) Due diligence should involve verifying all the numbers as on any deal, structural inspections, environmental study, etc.

.-31 spots-16 septic tanks (two spots to each tank)-Lot rent $200-5 Tenant owned homes (TOH)-1 Park owned home (POH)-About 3 vacant homes able to be renovated-About 4 destroyed homes that need to be removed-18 vacant spotsIncome (monthly)-$1,200, not including the POH rent, only lot rent.Expenses (monthly)-Trash $400 -Environmental inspections for homes moving in $40-Street Lights $240-Capex $40 (Roads, Well pump replacement)(Still formulating what other monthly expenses there will be i.e insurance, management)-Total: $720Other Details-On well water-Individually metered for electric-No property management-About (1/3) of the park in a flood zone-Flood zone spots require a FEMA foundation (2k-4k to build)-Owner owns free and clear, seller finance is a possibilityI have been thinking about offering the following options to the owner:1. $100,000.00 Cash/Bank Financed.2. $118,250.00 Purchase Price, $10,000.00 Down Payment, 180 Month Term, $601.00 Monthly Payments, 6 Month delay in payments (In order to create cashflow).3. $136,600.00 Purchase Price, $5,000.00 Down Payment, 240 Month Term, $548.00 Monthly Payments, 5 Month delay in payments.4. $167,000.00 Purchase Price, $0.00 Down Payment, 360 Month Term, $464.00 Monthly Payments, 4 Month delay in payments.The DownsideThe moment I add in the seller finance debt service, the deal is negative cash flow by $100-300 each month.

., you want a phase 3 environmental study.Financials: get 3-years income and expense statements, monthly rent rolls, and select income tax returns. 

Here are some of the major benefits: our finders would often require a lot of what I call pre-development costs (appraisal, Phase I environmental, downpayment, architectural drawings, home inspection, State Historic Preservation Office ruling, etc.).

Make sure you budget and negotiate for an environmental review.

And the metro area has barriers to entry, in regards to building housing such as a notoriously slow permit process, environmental constraints, geography constraints, transportation constraints, etc.

But I'm sure there are plenty of environmental concerns that would have to be addressed.