Although I cannot speak to how common that setup is.I would assume this is possible, but would likely need to be disclosed in PPM, or similar docs, since it will be diluting LP, if they come in as an LP.

How large of a leak are we talking?

This scares off a lot of people so be aware Just need to shop around for a great contractor and ask for referrals to not get screwed over Mold Try to figure out where it is coming from so when you get the property you can eliminate it Mold comes from accumulated moisture Be careful about mold in the basement, there may be a leak in the foundation Compartmentalized configuration By removing a wall to open up the kitchen it usually makes it more appealing Landscaping If the yard looks horrendous, there is a lot of opportunities there JUNK Lots of junk discourage a lot of buyers when it's pretty easy to clear outThree Problems I Avoid When Shopping for a Rental Property Neighborhood Don’t buy in class D areas.

Now I get there are concerns like vacancies, legal docs and the dreaded boogie man of the Mortgage being called due immediately. 

Title companies know how to do the doc prep and recording for closing a transaction like this. 

Looking back, I could of saved thousands of dollars upfront and during the life of the loan.Being told I could not refinance from a current lender and waiting months to do so, when all I had to do was ask another bank.Being lied to by a seller's agent that a unit could be a short term rental property several times in writing and text only to find after inspections and deep diving by my lawyers that there was an addednum added to the condo docs which striclty prohibited - completely sunk costs there and pulled out of that deal. 

I am getting everything in line to purchase a flip that has mold throughout following a water leak that went undetected for an unknown amount of time (months...).

Can inspectors judge if there is a leak?

You’ll have to pay for closing costs, doc stamps, funding fee, origination, etc.

As others have said, it requires a huge amount of water, and usually water storage, which leads to mold and/or leaks.