Except as otherwise disclosed in writing Seller 242 has received no written or verbal notice from any governmental entity or agency as to a currently uncorrected 243 building, environmental or safety code violation."

In California we have some of the strictest environmental standards there are. 

I currently live in a tiny town Grande Cache, Alberta where I manage an Environmental Contracting company working with First Nations, Oil, Gas, Forestry, Government and all the rest.My real estate experience is fresh at best but I am in a fantastic position to start with a nice piggy bank of life savings in the 10's of thousands, no debt, dual income with my partner and a fairly cheap rental situation at the moment.We have a wonderful opportunity with some land my partner was given on the Ontario, Quebec border aswell as some fantastic waterfront lots we have been looking to buy on West Coast Vancouver Island.

Even the best of tenants are not really conscious about their water use and if they are not getting a monthly bill in their name for their electric/gas use, trust me, whatever you think your charging in the rent may not be close to covering what each tenant actually uses. you'll find that heating and water will run you a bit-especially during winter months; so you may want to rethink being responsibile for light.

I'm happy with my returns but am very conscious of property taxes (IL is super high), they can make or break profits. 

I know it’s hard to say what to do without specific examples, so lets assume there are two lots: one which is level and zoned multifamily in an environmentally critical area; and another single family lot with a fantastic view on a cliff.

When I asked this was the response, "Soft cost expensive for architect, appraiser and environmental etc." and if I'm not comfortable with lending the money then I can opt for his first offer which was $500 for his consulting services.

My sense is that your logic is focused on environmental reasons, which is great.  

There is a price breakdown showing the various environmental studies that would be done, but am I crazy to be shocked by that number?

I have a background in construction, have owned rentals and done a few flips in the past, have a great partner that is also very cost-conscious, and we're using mostly subs and day labor to keep costs down, which is very management intensive.