So Congress in their infinite desire to never let a good thing go unpunished is putting the brakes on tax free primary residence sales and by extension house hacking in multi family structures. 

Today had to get another contractor to bid the property and will now need to get an extension for closing.

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?

First, you are not going to know how extensive the contamination until you do the Phase II. 

There is a fairly extensive checklist they use, and in my county are very helpful to new landlords.

While I believe the laws are federal, and therefore the same everywhere, a local professional with extensive experience in the area will be able to tell you based on the type, age and location of the property what your potential risk would be and the minimums required by law to have it taken care of, if necessary.

@Craig Peterson People with not a lot of time who like the higher returns, cash flow, tax benefits, debt pay down, appreciation, and control, but don't want to do a rehab.It's true the returns are lower this way but you don't have to spend a lot of time looking for off market deals, you don't have to go through extensive renovations and tenant turnover, and you have cash flow from the beginning. 

There are some properties that look good at first but are on too small a lot to do an extension or are already halfway through a remodel or somewhat updated and I always pass on them in those cases.

I owe specific thanks to @Scott Trench for his book, Set For Life, which played a big part in my decision making process, as well as @Brandon Turner and @Joshua Dorkin.I've spent the last 3 years behind a desk as an MLO for one the country's biggest hard money lender, working specifically with brokers across the country to facilitate loans on behalf of their clients, and the learnings from that position and the time I've spent on BP, reading the BP publications and forums has given me the confidence to undertake this life changing pursuit.If you or someone you know/partner with is looking for financing on any upcoming real estate investment, let me know - I strive to be of value and have an extensive lender network to ensure quick terms and reliable financing.

Lets start by stating that they have to be licensed, which is required by law including going through extensive background checks, be financially fit themselves, and go through education on laws and mortgage practice.