Perhaps we'll have a developer step in here to weigh in, too.I'm following your logic on the exposure to the lender, and I tend to agree. 

I am concerned about if there would be any potential exposure to Environmental issues if found,  The area is experiencing good growth with new outlets/ businesses.How do we limit our exposure, Is there any type of EPA Brownfield program, which if we join will limit our exposure.Our idea is to buy it with own pool of funds from frends,  and later build public storage on the existing slab. 

If not, what about the currency exposure? 

Forgive me if I took your question out of context and the excessive amount of metaphors, it just seems that the money that is meant for a deposit is already spent, figuratively speaking.

I found out that the property is on a high water table and there was a sump pump in the crawl space to help with excess water. 

I know people apply at multiple places and somebody in a luxury position (i.e. landlords) shouldn't be excessively-profiting from these applicants just because we can.

Maybe this is all normal but it seems excessive to me.  

Indecent exposure especially in the presence of a child .

Local lenders think local they might not have the exposure to other markets. ie: any property under $400k does not need an appraisal, they really do not care the valuation, they are just going to keep rates low and over inflate the market, its best to buy as much as you can in anywhere except CA or NY!

Prepare now so your exposure is less (husbands job) and then look at doing something.When you do sell take advantage of the 1031 exchange to shift your holdings and increase cash flow without paying tax on the profit from the sales.