The easiest way to avoid liability for environmental issues is to have an engineering firm perform a phase one.

I know of a handyman company that started out with the person that runs it being shown how to invoice and get proper insurance.One can impact the physical neighborhood in a positive way.There is also the chance to make environmental impact with water saving devices, lower wattage bulbs, maybe even solar panels or charging stations for electrical vehicles.

Think environmental!  

I believe that the consistent cash flow rental properties 'can' provide is one of the best hedges against the volatility of the stock market, and is the single most reliable way to ensure income into retirement.I actually work full time as a Regulatory Specialist / Environmental Compliance Manager for a large chemical manufacturer based in Maryland.

Older properties carry a higher likelihood of systemic problems: lead paint, poly piping, aluminum wiring, asbestos, environmental issues, etc. 

You should check out Crime Prevention Through Environmental Design (CPTED) it was brought to my attention by a fellow BP member who is a veteran investor.

Drycleaner Environmental Response Trust Fund Act J.

Wetlands and other environmental factors and archeaological concersn were probably already handled if the development is new.

The purchase agreement should layout a time frame to complete some of these "due diligence" items.You will need a boundary survey and title commitment to verify there are no liens or encumberances on the property.You will want to hire a geotechnical engineer to verify the soil is suitable for building an apartment building.You will need an environmental engineer to make sure there are no contaminants (asbestos, mercury, lead, etc.) on the site, as well as wetlands and/or endagered speices.If you need to rezone the property we may want to consult an attorney and/or civil engineer to help with that.Depending on how many units you intend to build the city may require a traffic study be completed to determine the impacts to the streets and intersections.This is typically how we start a new site and it is a very general list of items.

A home inspector should be part of your due diligence as well but their job is to identify structural issues like the roof, the foundation, the presence of things like mold or termites, environmental issues etc.