Hey @Ryan Brown - if you've provided the splits and tenants have ability to control their own temperature, then I can't imagine why you would be further responsible for the tenants unit temperatures. 

Maybe see if your local flood control authority or whoever at the city would want it and maybe pay a nominal amount for it.

This is precisely the kind of answer I was hoping for.

Controlling payments can help, but its really difficult to catch back up if the work wasn't completed correctly in the first place. 

Aside from seeing a parcel and knowing a great project could be built on it, it's necessary to be able to show precisely what can be built, how much it will cost, and have real numbers, based on actual bids to back up your projections. 

., I have never considered doing a rehab where I didn't control the scope of work to be done.

It's harder to get started right now and people are unwilling to control there personal finances. 

However, there may be issues to overcome as the property your building will be owned by an entity controlled by the 1031 intermediary.

Your state laws control, but the loss value to the materials will be based on fair market value.

If you own the asset, don't own the asset, or don't even control the asset, you can still play in this space.