The concern is if they do a hard pull on your credit,  your credit score will be impacted. 

My concerns are the amount of margin that will be consumed by financing the property as well as capital gains taxes and possible holding costs.

I'm concerned that you wrote the property is being used as an unofficial duplex. 

Also, there is nothing wrong with accompanying the inspector for the first hour or so of the inspection.

A few years ago talking about any liability by owning notes was not necessary, however we now have 3 areas of liability concern as a lender.

They're still selling though, so obviously there's still ways to profit from them (Cali appreciation, paying tenants to leave, waiting years to get to market rents, etc.)Anyway, you're not the only one concerned about their local market.Good luck!

I wanted to bring up a concern of mine as a rookie investor.

We had to take them down and open up the wall to address some plumbing concerns so keeping them was just not feasible.

Here are the items of concern (to me) that are listed on the inspection report.Roof appears to be 15-20 years of ageMold buildup on the foundation walls and support joists/subfloor.

We are likely to hire a real estate attorney to ensure that our interests are covered as thoroughly as possible so my concerns are limited to negotiating based on a single realtor in the transaction.