I had considered offering the value of the land only in case the mold couldn't be remediated and it ended up being a scrape.

Now if you are including extensive asbestos remediation then you probably could get to half that number per foot.

I'll need to test for lead and remediate which for obvious reasons I'd like to avoid..

You cannot generally enter willingly into a contract knowing the details and then ask the court for an equitable remedy unless it is a contract of adhesion or shocks the conscience.

There shouldn't be too many vacancy and repair scenarios that take more cash than that to remedy, especially if you did your homework upfront.

After my surgery in the fall I started reading here, then joined and started posting.

When the income is derived simply from buying and selling, especially if there is value added through the process, then that typically will be viewed as conducting a trade or business, and if done on a regular or repeated basis, would have UBIT exposure.So it is not the notes, but the buy, remedy, resell model that create the exposure.

I would not worry about it but if it is something for families I would look into what it would cost to remediate if present.

The law usually requires rents due under such conditions to be dposited with the court or "escrowed" till the court can hear the dispute/fashion a remedy.

Due to CO issue I had to ask the tenants to vacate the property until I was able to remedy the situation.