I know that this would mean more expensive rehab costs for materials, but I would think it would also mean the ability to ask more on resale, as more and more home buyers are becoming interested in green and eco-friendly properties that are both environmentally friendly and healthy to live in.Does this make sense from a resale value perspective, as well as standing out from the crowd in terms of marketing?

I also thought a "green" house was an environmentally friendly home that carried the Al Gore seal of approval, e.g., toilets that ran on rain water, central heating from mantle lava, appliances that could run on an AA battery if needed, etc.

Even things that sound like sure bets like beach front property, water front property, or property in the path of development can be affected by future flood zone laws, future zone changes, future environmental laws etc.

The point is: property appreciation is not guaranteed, because there are a myriad of economic, social, cultural, political and environmental factors that can affect property value--and it is very difficult to predict how these factors will interact and affect property value over the next 10, 20, 30, 40 years.I'm always surprised by how often I have to say it on the forums, but again:  if your plan hinges on future appreciation (i.e.; appreciation is a necessary requirement for your plan to work), you are not investing, you are speculating.

Will the lender require that I get an environmental phase 1 and maybe phase 2 study?

@Andrew JohnsonI'd be seriously concerned about unknown environmental issues that need time to inspect.If the place has been essentially abandoned, my question would be: what's the rush?

It's quite possible that you bid on something that looks fine online, only to find out the building has been torn down or burned out - both have happened to me and I've lost money in the process.If you're willing to put in the time, you can make a small return on a few thousand dollars, but you should understand the risks and it is one of the more advanced/legal intensive areas so again I'd recommend consulting an attorney on the risks because you can also lose money, possibly a lot if there is some kind of environmental problem on a property you bid on.If you don't absolutely understand what you're bidding on and potentially getting, if you bid less than 100%, then IMO you should not bid at all.I'll also say that RI Housing typically takes the cream off the top, in that they get first right of refusal to take owner occupied liens at 100% and they go after houses with equity.

We used Bay Hill Environmental based in Cherry Hill, NJ.

Eric, if you are talking environmental contamination site clean up, I wouldn't touch it and I suggest that you walk away and find something easier and less expensive.

in my experience buyers are concerned about oil tanks in the ground and potential environmental ramifications due to leaks.