As an investor, that is part of the territory and you simply move on to the next.

Mold is not normally dangerous unless a person is allergic to it.In this case, the landlord was notified of a potential problem and agreed to have it repaired.

@John Leavelle I actually own my home even closer to the coast, so I am decently familiar when it comes to that territory.

if its a true danger than you better get it removed. 

Everyone's points about possible large capex expenses needed early on are right on, and yes I can see I should start off with a big cushion to not be in danger of not being able to make mortgage payments.  

Even fix and flips in this area can be dangerous because there are not as many exit strategies as there are in other parts of the country and holding costs are high - in other words you do not have the option of renting out your fix and flip SFR usually without taking a significant cashflow hit.

Forgive me if this is in the wrong section but I had a question about a garage I wanted to demo because it it leaning dangerously to the side.  

Flipping house is dangerous.

The short answer is, it seems to me that it depends on the territoriality of the tax basis of you country.Some countries like US, France tax their fiscal resident (resp US person) on their worldwide income, so it seems preferable for french to set up the LLC as corp, and pay dividend to owner (not sure what happens if it is a partnership).Some countries like Hong Kong tax their fiscal residents on their territorial income only.

If you end up going over budget on the rehab (VERY common), you will need to fund that out of pocket.The danger of not having enough of your own cash is that you end up with unexpected costs you cannot cover and you lose the deal.