If it was a major spill over a long period of time, you are looking at serious costs $25,000 to $30,000.Essentially, it's heavy equipment to remove the contaminated soil, treatment of the area, testing. 

@Jeremy Basiger  it just sounds like you do not have an established relationship with this agent, and I agree, a iphone photo of a bank account is not enough.Those that conduct themselves in a professional manner will get that treatment in return.

@John Thedford, Unfortunately, your intent is to build and then sell, which does not qualify for 1031 Exchange treatment. 

In addition you'll loose the capital gain treatment on the sale of the property because when you take an IRA distribution it will be taxed as ordinary income.

Steve, what are your opinions of depreciating certain identifiable components as personal property, such as the water heater, other appliances, window treatment, etc.?

You could buy, rehab and then hold and they would qualify for 1031 Exchange treatment, but not if you buy and hold for sale.  

So I am trying to get prequal'd for an owner occupied tri or quadplex here in SoCal.  It will likely be FHA.  I was told the other day by a lending rep of a certain nationwide bank that because I'm just starting out a...

Ask for termite cert from owner--if they can't provide one, consider having a treatment done. 

Property that qualifies for 1031 treatment is property you intend to hold for productive use in investment. 

It also does not necessarily qualify for long-term capital gain treatment even after 12 months.