Called bank on "abandoned" property but they havn't taken action for 3 years and probably won't becuase the county will get the property and the bank will be out at least 150k, so they have no real incentive to move on this at the moment.What I have done:1) HOA won't help at all, and had no advice.2) Low Income housing authority says they are looking into it, but no action so far and apparently the owner has to sell or sign the property back over to them for anything to really happen.3) Health department and Code Compliance department are "investigating" but no real action either.4) Called bank/servicing company, but they havn't done anything as they have no incentive and it would take 90 days to evict people anyway.5) Called police on the fights and they have come, but they are still there.6) Got the owners number and talked to him when he showed up one day (driving his lexus).

For the past four years, I have worked in Alabama Power Company's (APC) Corporate Real Estate department as a GIS Project Specialist in Land Management and most recently as a Real Estate Specialist in Shoreline Management, focusing on APC's ownership and FERC license compliance along its eleven reservoirs throughout the state, accounting for more than 3,400 miles of managed shoreline.Real estate has always been at the heart of what drives me both professionally and personally.

Someone local to me whom said she was also a landlord, that I just happened to brew up a conversation with suggested that this tenant would be breaking the law by not having electricity and thanks to the feedback from here, I think I will have an attorney give me  a letter to give him, to get into compliance or move.

I checked with the zoning officer yesterday and we meet their compliance test as all but one of them are related.

(a health, environmental, public nuisance and waste, liability among others issues,)Even if the lease doesn't directly disallow a business from R-1 there will be in contract something addressing tenant's responsibility to protect the landlord property , not creating waste, commit public nuisance, or damage.I would have no problem to a good, responsible tenant for use the residence address for ex. handyman or plumber since he does not physically conduct his business from the home, and all his tools might be in his truck or rented storage, but I still would make sure that I am not being liable for loss, damage to his tools...and request he has a rental insurance, compliance with city regulations.Conducting online seminars is not the same as doing a hair extension, or running car repairs shop from R-1.  

We have ideas on ways to capitalize on the space and encourage timely payment compliance from the renters, which he did note has been an issue.A restaurant right near it has just changed hands for no less than $220k.My question to you guys is two fold: What else would you be looking at/for?

It's essential to stay informed about the specific regulations in your area and ensure compliance with all applicable laws and guidelines to legally reject a prospective tenant.

Your first position lender is effectively circumventing your rights in a foreclosure.I don't know the licensing laws for lending in PA, but I'm certain we could not just set up a business there from CA without strict compliance.

@Sean KrugerIts not vague.You sell property for $300,000, net of commission and selling costs.You have $300,000 to invest in order to pay no taxes.If you spend $150,000 only, you would have $150,000 capital gain remaining on the "boot" and the Federal tax would be 20% (probably) or $30,000 in Federal taxes not counting state and local taxes.So you are correct the 1031 buying one $150,000 property would have the same net effect and would not be worth doing, considering the time, costs, and IRS compliance.

I bought a pre-foreclosure once, as is, the seller is totally broke, property a total mess, and I as the buyer had to spend some money on the property to bring it into compliance with local zoning first before we can even close.