If you’re only requiring them to pass HUDS standards then your bar is low.

By law, licensed individuals are required to present all offers to purchase, regardless of who they come from or how unrealistic they might be. 

Do you have any capital expense required on this property?

Probably due to all the losses they've been experiencing with all the wildfires, floods, etc. of late.We even have a case right now that required the owner to sue their own insurance company, because the insurance company denied their claim on an alleged technicality.

if so does the city require updating?

These typically do not require any personal credit checks and are directly based off the property in question.On top of the $10-15k as a down payment, do you have any capital to invest into the property? 

The weather seems to be heating up and people will want to be closer to the ocean.

However, there are specific rules and requirements that must be followed to qualify for this tax deferral.In the situation you've described, your client wants to use a 1031 exchange to buy his mother's land.

If he was doing minimal renovating in this scenario (obviously no electrical wiring etc) is he required a contractors license?

Many shy away from them because they do not want to deal with the extensive paper trail required to maintain separate tax filings for the business.