The purchase agreement should layout a time frame to complete some of these "due diligence" items.You will need a boundary survey and title commitment to verify there are no liens or encumberances on the property.You will want to hire a geotechnical engineer to verify the soil is suitable for building an apartment building.You will need an environmental engineer to make sure there are no contaminants (asbestos, mercury, lead, etc.) on the site, as well as wetlands and/or endagered speices.If you need to rezone the property we may want to consult an attorney and/or civil engineer to help with that.Depending on how many units you intend to build the city may require a traffic study be completed to determine the impacts to the streets and intersections.This is typically how we start a new site and it is a very general list of items.

A home inspector should be part of your due diligence as well but their job is to identify structural issues like the roof, the foundation, the presence of things like mold or termites, environmental issues etc. 

The administrative screening elements that all have mentioned are important.

Let's say everything he said was golden, which elements would you support or think might actually help the economy?

So there is an element of specialization that would apply.

Don't like the environmental laws, rather than protest, go to work where they have influence.

I believe that I can rehab this place for 30K.If I’m right, I can flip it for 35K profit, or buy and hold for an ultimate cash on cash between 10 and 15 cap.What are the environmental risks involved with railroad sidetracks (I’m thinking repair and refueling, possibly herbicides or cargo)?

There is probaby something you are overlooking...environmental waste issues with the property...city plans to take the house under eminent domain...something.

Go ahead and buy it mitigated and you have a known element.

It is probably an issue with the element ( heat producer), my guess would be a bad relay (fuse) You will most likely need a tech tho not a big expensive repair - if thats what it is.