Is it common to see cess pools out there still and are there any companies that have alternative treatment units in the area?

For example, the previous homeowner’s seller disclosure checked yes there has been “Previous Roof Repairs” and “Previous treatment for termites or WDI”.

For example, the previous homeowner’s seller disclosure checked yes there has been “Previous Roof Repairs” and “Previous treatment for termites or WDI”.

@Bruce RunnSounds like Jordan may have waited long enough to get capital gains treatment but it would have helped a little if he did a partial 1031 into one of the new properties.

@Elijah FastYour lender and possible your insurer will require a Phase 1 assessment .... this is predominately a visual inspection and paper exercise (costing anywhere from $750 - $2500) with the objective of discovering any potential contamination of the property (or demonstrating that there is none).An abandoned underground storage tank (UST) is something which should be disclosed by the vendor (it appears that it has been in this instance), but it is an example of the sorts of things a Phase 1 ESA looks to discover.Depending on the results of the Phase 1, you may very well be requested to continue with a Phase II ESA.Having a Phase 1 lets you know what you are walking into ... which is why lenders want them.  

or "subject to visual inspection" however you want to add it in the additional terms on the purchase agreement..  

I'm neither a lawyer nor an accountant, but I recommend Googling "closely held corporation" and then asking your tax accountant how, if any, the proposed idea might impact your overall tax situation (https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-5: A closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers.).I've read that when two closely held corporations owned by the same small group of shareholders do business with each other, the IRS sees a red flag because some people try using this approach to evade taxes.From my readings of personal finance articles, this additional scrutiny is based on whether there is an "arms length" between the two parties in a transaction. 

I also LOVE @Jenessa NeSmith’s royal treatment!

Some experience is preferable in negotiating.If there is any way you can owner-occupy the house whilst renting out the rooms to the students, you will get a more favorable treatment from the bank in terms of loan and interest rates.

@Ouman You If the property was her primary residence, yes, it will not qualify for 1031 exchange treatment.