I believe the lower unit tenant would want to stay there for a couple more years, whereas the upper unit tenants have told me that they would like to buy a house maybe in the next year or two.  

I assume it’s fairly accurate and has been a nice resource to help me and my wife stay on track.

Is this a reason to stay away or is it a fixable problem for mold removal specialist? 

If this project stays profitable, we would like to repeat the project since there is an abundance of land available with the valley and we only need about 1/2 acre to make it work.  

I am staying true to my numbers and not budging.

OK, after looking at your post again my suggestion would be to buy a house in Terra Santa as close to the school your kids go to as possible- Wait for a foreclosure that needs paint and carpet, get an account at Home Depot to get an idea what you can do for a budget plus they have financing and a one year guarantee. 

I’d stay away.

Kitchen needs to be redone with new appliances and probably a new layout, carpets need to be replaced, walls need to be stripped of wall paper and painted. 

Tenants want to stay.

I assume Sheriff sales are a stay-away, given my lack of interest in buying a total disaster.