California outlawed President Trumps health plans.

However I'm afraid she'll be able to claim financial hardship due to health issues despite having easily $400K of equity in her property. 

Based on your situation I would always lean towards preventing moisture in the crawl space and looking out for possible tenants health.  

Thankfully, most of these kinds of threats are empty. 

Mold is everywhere, but there can be a health issue if readings are excessive as compared to the control sample and as compared to what is considered a normal indoor fungal ecology.

or other governmental entities (including health agencies) have educational materials that may shed some light on the problem?

If you cannot afford the health and safety requirements of owning real estate, I'd suggest you find another type of business. 

Perma-bears love precious metals, and try to stay primarily in these physical goods: Risky.I think a diverse and balanced approach is your wisest path toward financial health and asset protection.

The properties also appreciate normally over time, so this property 10 years from now will show 10 years of depreciation on it lowering the value even more when in reality the value will most likely have appreciated greatly.I understand that the book value of the property is already entered and is standard, but it is failing miserably to give a true and accurate snapshot of the company's health.  

Their unspoken threat might be: don't make a habit of buying such cheapos!