Did your lender not require an environmental study? 

You then use the money to pay for commercial attorney fees for lease termination and settlement, tenant leasing broker fees to find new tenant, lost downtime rent until released and occupied by new tenant, commercial attorney new tenant lease negotiations, and any tenant improvements credit tenant is seeking.You also need to check the rent history of the property for businesses for environmental issues.If this tenant is paying close to market rent and weak net worth then that can be very high risk.No legal advice given. 

Hey everyone, There are various ways to analyze a specific property and there are ways to individualize different elements of Market and Neighborhood data. 

This means that many elements of the contracting environment can be hardwired into the architecture of the security.

As @Jim K. stated to many human elements come into play you cant control.. and its one reason I am so bullish these days on new construction its easier to manage costs and I don't have to compete with all the wanna be wholesalers out there..

There is an element specifically addressing the Qualified Trade or Business definition.Doesn't sound at all auspicious for most rental real estate landlords. 

I would consider knocking the property down and building a home for myself to live in when all is said and done, so I know that adds a different element to it. 

@Stanley Bronstein  @Jay HinrichsTen years ago Texas changed CD law so it eliminates almost all the abuses, but still maintains the essential element of allowing people unqualified for financing to purchase a property.The law that accomplishes all of this is astonishingly simple.  

Make sure the $5K is not for other third-party fees such as any environmental, title or credit check expense.As for who can order an appraisal, I would defer to an actual appraiser but my understanding and experience is that appraisal regulations only impact regulated groups such as banks and therefore hard money lenders can effectively make up their own rules regarding appraisals since they are not regulated like banks and are lending their own funds.Finally, banks do not have the "right" to redline.

Are there any lead paint/asbestos/environmental issues?