If the property can support a Freddie Mac ($750M minimum loan balance) or Fannie-Mae ($1M minimum loan balance) backed loan, the loan will be non-recourse - no-one comes after your personal assets if the property fails unless you did something illegal or environmental issues were the cause of the default.

If lease rates are less than you think and costs go up to renovate then poof your profit is gone.What about environmental?

But I assume you'll be doing extensive due diligence before you purchase, anyway, so maybe the tenant will  be satisfied if you just share your inspection reports and the building plans, environmental reports, surveys, or whatever else you'll be undertaking anyway. 

Rents (if applicable) will be current and be prorated as of the date title transfers.DEFECTS: Seller warrants Property to be free from hazardous substances and from violation of any zoning, environmental, building, health or other governmental codes or ordinances.

Could be environmental clean up issues, zoning, covenants (dedicated to green space etc) located on a floodway or swamp, irregular shape or landlocked making unbuildable, etc.

Especially a house in Tahoe....there is snow removal, BMP and other environmental costs/headaches that go with a property up there.  

Plus, laundromats suffer from environmental issues as well that can reduce the value of the property. 

So my question is besides legal, title and environmental inspection, what other contingencies would you require, and if we're "all in" on the deal, is there a danger to agreeing to a high DD fee to try to win the deal?

You could be on the hook for the cost of environmental cleanup.You need legal representation from an attorney with experience in gas stations.

@Jack Tucker - A few things about gas stations that you need to keep in mindLenders will require that a Phase 1 and\or 2 be performed to ensure there are no environmental issues.