They look into title issues, environmental hazards, flood likelhood, zoning, encroachments, pest infestations, CCR's, comps, plumbing, electrical, safety, structural, radon, sex offenders, planned highway projects, etc.   

I also live in Mission Viejo, and run an environmental consulting corporation.  1) There are no mold laws or regulations in California, but that does not mean owners and managers have no liability.2)  Calling the insurance company is a terrible first move. 

(Check with your state on these laws)Make sure you get a completed environmental report on the lots (developer should be able to provide this to you).For infill projects, be very careful on lot location and the surrounding properties.

.-20 year amortization-30% down payment-interest rate that was higher than the rates for single family-5-7 year balloon-net worth requirements to qualify for loan, had to have net worth equal to property value-required to use third party property management, even though I already owned and managed several other rental properties-more costly inspections and environmental reports neededThese are factors to keep in mind when investing in multi-family, especially as a smaller investor.

Are there environmental issues?

Their body wash is great, smells good,  and the big bottles last a long time and are more environmentally friendly.

Note: current politics and environmental factors (COVID, unemployment), make the gamble more risky today than last year.

The majority member wants me to take the land for $1, and assume the environmental and back property taxes of $52,000.

I believe Towne Bank is a good one down there.If they say no and you have to go the portfolio route, you're looking at about 25% down and fees that range in potential points (probably up to 3), an up front appraisal fee of about $1400, closing costs that include an underwriting fee of about $2995, an environmental survey of about $1395 and entity review fee or a closing fee of about $700 each. 

The best commercial property I ever bought had a Phase II environmental study presented with it disclosing the underground storage tanks and after researching it I found it was able to be registered for superfund payouts and the epa authority involved would be very unlikely to require cleanup in this instance.