*Force* an inspection, and hope they are home then?   

I just like to be sure that I'm at least breaking even in year 1, so I'm not being forced to reinvest in that property each month.

If they are forced to relist the property, they need to advertise it properly.

So this would work if I added an additional lets say 25% in forced appreciation, I could pull out my original investment and and leave 25% of equity in property to avoid P.M.I.? 

I'd walk away from a mold property unless a substantial discount is given for remediation and it's clear what part of the home is impacted.

You should ask them about starting a non real estate related business and see how it could impact your real estate lending. 

This is not going to impact your tax situation when he will eventually sell this.

The BRRRR factor in my thought process is that leveraged more quickly. i.e. with option 1) buying more turn-key properties without forcing appreciation and refinancing (BRRRR)...it may take me many times longer to acquire the same value/# of properties, vs using option 2) the BRRRR method.

* A bonus play would be purchasing a small commercial property with at least a 25 space lot in the aforementioned areas; the idea is to convert the lot into paid parking to force appreciation.

My bigger concern was what the impact could be on the larger CRE and the trickle down affect it will have if those owners no longer sell and just hold for the long run.