-Costs of street development and utility extensions (public water and septic)-Approval process for subdividing, what should I make contract contingent on to protect myself (approvals, soil tests, stormwater etc)-Is there a form of financing people generally use?

Absolutely beautiful and the water is always warm. 

The same is even truer of anyone who decides that they're willing to part with $2500/month.Your position is quite unlike selling bottled water in a disaster zone for $20/pop.

It has some sort of foundation damage.

A condo I purchased 6 weeks ago, seems to have water damage and black mold. 

1) Make sure water pipes are in good shape inside and outside on the property.2) Have a good electrician handy that can add lights and reroute wires/switches.3) Concrete > Asphalt Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

There seem to be no exit clause where if i weren't able to find a end buyer I wouldn't be liable for any damages etc. 

Try to find a good insurance agent to get the lowest rates for you and also have the tenant pay the water bill if possible.

I know college kids can do some damage if you rent to the wrong ones.

Maintenance costs shouldn't be covered by the tenants unless they caused damage themselves.