Your tenants love their homes and don't want them to be sold from under them...that's it, pure and simple. 

My best guess is that because I have 2 bellies holding water and my lateral run is about 40' longer than his, I'm seeing issues and he is not.

So no heat, no hot water.

In some areas well water provided to others must be inspected and tested routinely.What are expenses? 

I know that the interior has been striped down to studs which might indicate water damage and possible mold remediation.What should I look for?

This is in addition to whatever you will have to pay to light the grounds, parking lot, water bill etc.  

Obviously I'll be fixing anything that flat out doesn't work (hvac, furnace, water heater, etc). 

Originally posted by @Blake Broomer:good evening real estate community is it better to file your real estate holding company as an LLC, or Scorps  That purely depends upon what you are doing.

I did see some water on my cellar floor yesterday!  

I know some people (some are good friends of mine that I respect) teach this type of transaction, I personally feel it muddles the water, and is overcomplicated.