I have buy n hold from just a few years ago (in San Diego but OC would have similar returns) where I have made in excess of 5 times my investment and have pulled out my initial investment leveraging the money for additional profit therefore achieving far in excess of 5 times my investment. 

The existing tenants have mentioned separately (this is an up/down duplex) of smell of mold.This is not difficult to believe if in fact there are these obvious cracks on the home exterior.There is no doubt water/moisture is getting into the home and creating a condition for mold to grow.We had a structural engineer out to do our buyer’s inspection yesterday, report is due out later this evening (11/04/17).Verbal communication while on site, indicated a mutually shared concern over these cracks.The roof appears fine.A wall in the backyard will need replacing as the soil weight has almost pushed this wall over and it is only a matter of time before this thing comes falling over.Boiler may need replaced, windows as there is some clear cold.These are just concerns at this time but inspection report will lay all this out once received later today.I should have been a little smarter in not agreeing to a change in inspection objection deadline when it was presented by seller.My buyer’s agent and I should really have talked this one over, as I realize now that, it left us with only hours after inspection to come up with our inspection objection response and to be honest I will not have time to get bids for any of the extensive repair items which I do not doubt will be confirmed in the report received later today.Seeking any advice that you can give on the following: Would you proceed with purchase of the above detailed home?

Some are even building HUD homes with 2x6 exterior walls, radiant barrier roof decking, a full house moisture barrier, low-e vinyl windows, extra roof/wall/floor insulation and high efficiency HVAC systems.

In NC, if it's something labor intensive, I hire out as I can't charge for my own labor, but I can charge, for example, excessive cleaning. 

Many great tenants would not even consider signing a 2-year lease, so you may be missing out of some of the market.From our rental criteria:FINANCIAL/CREDIT HISTORY1.No outstanding debt to previous rental property owners.2.No outstanding debt to utility companies.3.No outstanding debt in excess of $1000 that is not in a payment plan.4.No excessive monthly financial obligations - more than 20% of income.5.Lack of credit history or marginal credit history may result in additional security deposit. 6.Derogatory credit (past due accounts, collections, charge off accounts, tax liens, judgements in excess of $1000 and/or bankruptcy) may result in additional security deposit or denial.

The slab does not show signs of excessive movement which would require structural repairs at this time. 

The pictures look like they could have just put excess pressure on the hinges trying to squeeze something through, in which case they're telling the truth but still in the wrong.

You would be able to pick the best to keep for yourself and wholesale your excess to other investors. 

The excess inventory will burn off slowly and we will have 96% occupancy rates again in the near future.

One example recently, I had an issue with a tenant breaking multiple house rules (smoking, party, extra guests, late check out) and causing damage and excessive clean up.