Mold can be a health hazard.

At $100k I am $25k into my "safety net"...and I am very risk averse.Anyway after seeing the property sit a year I decided to reach back out to the owner (its a FSBO) and have another conversation.

There were surveys out for the last two, three years about the expectations and what people want to see as far as schools, shops, safety, street lights etc.

Have them sign a piece of paper that releases them from the lease, but acknowledges that you had the mold issue professionally mitigated and testing didn't show a hazardous condition.

Even though someone could theoretically purchase a note for $30K and just let whatever happens happen as they work it out, there's an inherent safety in spending the same $30K to just purchase education to help navigate those waters.

Her insurance company picked up the tab for a safety check on the oven.

@Taylor Hazard Thank you so much for great answers and info!

4) Following this process, what are the biggest hazards I would still be exposed to?

Tripping hazards, snow, dogs, etc. can wreak havoc on that situation. 

REIT's and institutional investors will happily take very low cap rates for safety of protecting their capital and ease of management.