It is important to find someone that will correct the water source in addition to remediating the mold.This comes up frequently on real estate transactions, and I usually help my buyer clients negotiate to have the seller pay for this type of repair prior to closing.

Comps put similar properties in good shape at about $88k-$95k (I'm using low end for estimate)It needs:Roof (I budgeted $10k)Siding (I budgeted $10k)Minor structural (I budgeted $3k)Termite remediation (I budgeted $5k)Mold remediation in the bedrooms (I budgeted $5k)Sheetrock work (I budgeted $5k)Carpet/Paint (I budgeted $5k)Total repairs are budgeted at $43k.Kitchen and 2 bathrooms are in good shape.

Once you meet an Investor Friendly Realtor in your local area all of the other concerns you have above will quickly be remedied.  

The LLC does create some level of complication of enforcing the remedies provided in the security instrument and note and for a new inexperienced borrower, I don't think they will extend that risk on the first deal because of those underlying ideas.As many folks pointed out, you really don't need the LLC for protection on deal number 1.

CFD/LC are antiquated instruments and most do not carry the type of remedies that many think they do.  

For instance, some investors have ignored or have been slow to adhere the license requirements, so those notes in existence but because there has not been an extensive enforcement of rights and remedies, the body of law around non-compliant Seller origination is not filled out well.

I hope this works out for you and the contractor can remedy the issue.

This can happen any time before the loan is paid off.The mortgage holder's only remedy is to foreclose for non payment if the debt was not reaffirmed.

The remedy would force the neighbor to create a new entrance.

I find the following:Occupied unit needs roof leak repairs on the ceiling and the roof(approx 16sq ft)Occupied unit Surface mold remediated in the bathroom (approx 4sq ft)All 3 units need bedroom carpets replacedAll 3 units have the possibility of lead paint being used(haven't received disclosures yet)All 3 units need cosmetic repairs in bathrooms and kitchensExterior needs new paintTree hanging over roof, needs to be trimmedPossibility of rats as told to me by occupantsCabinets, floor laminate, electrical, plumbing, doors, windows are in good shape.The RE environment here is pretty competitive, the quicker I decide the less risk there will be of losing this property.