I'm not a lawyer, but what kind of liability do you think you'd have with the pool?  

Any referrals to a lawyer if needed to complete the eviction?

My lawyer said he will require all construction to be permitted and in compliance with Chicago building code, but I'm sure the seller (who is stubborn) will not agree to such warranty (or provide permit #).

I am not a broker, lawyer, or professional giving legal advise, but from experience if you place that new property into an existing LLC and somebody sues that existing LLC for something that doesn't even have to do with the new property that new property could be part of that legal action as well.

My lawyer made it clear that its risky signing the contract and waiting for the DOB to correct the issuel, back to that later. 

It really depends on the risk vs. reward for you and how much time/money you have on hand.My gut reaction: lawyer up and prepare to sue both the city and land owner for creating hazardous living conditions.

(https://www.biggerpockets.com/forums/88/topics/485...)Here is some helpful link from BP that might help you, but personally I would talk to a lawyer/Attorney to make any final decision(s) that way you do things right and you don't loose money....https://www.biggerpockets.com/renewsblog/2015/09/2...https://www.biggerpockets.com/renewsblog/1031-exch...https://www.biggerpockets.com/renewsblog/2015/12/1...

You may want to spend a few minutes with a lawyer and/or mortgage servicer.Good luck, Jim 

You will see this sometimes when there are known issues and the seller doesn't have the resources or the "mental strength" to deal with the process anymore.If you want to proceed further, make sure you speak to your lawyer about what's needed.

I think the best route would be to take some time and find a good real estate lawyer and ask them about how to structure something like this.