If a property has environmental issues, like crack and meth in the walls, the powers that be generally file a notice along with the clean up order nailed to the building, which can be removed.

There are many reasons for this to be a sound law to prevent fraud, for example— imagine getting an absolutely filthy property with huge environmental issues without even knowing it’s been conveyed to you.

Phase 1 environmental testing has been inconclusive, and a grant from the state has been awarded for phase 2 & 3 testing with the balance going to any clean-up.

If there are wetlands anywhere nearby, a conservation or environmental department may require permitting as well. 

In some "blue states," it takes months of meetings, permitting, and environmental studies before you can even break ground. 

Specifically are there environmental shifts that might be happening in the area?  

@Roy N. broke it down really well.It's not just financing but countless other costs with what's considered commercial dwellings (6 or more units), environmental, insurance, etc.Feel free to DM me to go over some options for residential, and depending where you're located I can likely find you a really good commercial broker. 

Some other things you should do:SurveyPhase 1 environmental inspectioninterview current management companyinterview potential management companies and ask their suggestions on how they would manage the property.

I have an engineer that travels across the country for me and does a site inspection, environmental phase 1 study, and a cost reserve stable.The cost reserve stable is where the inspector looks at all mechanicals and other vital systems to the buildings including roofs etc. and then models out based on when they think those items will reach life expectancy and need replacement.

I submitted my application on May 4.Fast forward to 6 weeks ago, I got a call saying they needed to do an environmental study for one property, as the appraisal mentioned a prior gasoline spill near the subdivision.