Walk away.BTW, I am not religious, but I do know flooded basements and danger signs. 

Purchase price: $195,000 Cash invested: $50,000 Sale price: $305,000 We got rid a dangerous spiral staircase and added open faced staircase to keep the open feel concept.

Using licensed tradesmen to do work unpermitted should be fine, but using Joe Schmo to do everything would be dangerous.

Are cracks by themselves dangerous, or are they scary because they indicate foundation problems?

@Costin I.I suspect you may be conflating two separate and distinct events in a syndication: 1) member capital return and 2) cost segregationA cost segregation front loads depreciation in year 1 to offset gains, in a nutshell.

(I don't get a sense that he is physically dangerous, but I could be wrong.)  

If its a fast moving multiple offer market, there is no danger in listing low, as the market will be efficient and it will get bid up to where it should.

Currently there are trees from a next door property that has grown over a fence into my yard and and even grown within the electrical pole wires (dangerous) Whose responsibility is it to cut them back?

Also, some of the GCs said there is really no distinction between 2 units and single family, and this contradicts to what i heard from the zoning dept.Is there any wisdom here on BP about dealing with zoning restrictions, given the house is already purchased, and it is a really good opportunity for 2 units (nice layout).And one more thing: if i separate basement and first floor, and keep it as a single family - is this ok? 

You appear to be banking on appreciation, which can be a dangerous game and not something that helps a long term buy and hold investor (appreciation does not help cash flow).For me, without now much information, I would not be interested in the property for anything more than $200k, and that would assume that rents are at market rate and the property is in pretty good condition with little deferred maintenance.