I figured it would be poor form to potentially hurt a friend's relationship with his clients by wasting their time.  

If they're not, it's a long and involved (and expensive) process.Most often, the larger parcels will be developed into graded lots by one of the regional development companies, then sold to regional builders to construct and sell the finished homes (and potential commercial components).Smaller developers (like myself) can take on the smaller parcels (say, 10's of acres) that are too small for the regional companies to touch - there's an opportunity for your client to partner there and capture more of the profit stack if s/he's interested.Regardless, there's plenty of brokers who work in the space and broker between land owners and developers for owners who aren't familiar with the business. 

So I have found a 3/2 SFH property in foreclosure being sold by a bank at a reduced rate.  It is partially rehabbed but 2 of the rooms are severely covered in mold (bedroom and basement).  Is this a reason to stay awa...

We'll have to see how that all shakes out.Looking at rent potential, a quick look showed me 3/4bd/2+ba houses in that 92124 zip going for anywhere from $2,450-$3,895/month. 

Never had any success, I suppose I wasn't clear enough in my pitch, and failed to optimally outline the potential in the investor. 

I checked the permits on the building and have not seen any pertinent to the conversion, so I am assuming it was not done legally or potentially up to code and certainly not with proper zoning approval.

With the understanding that the potential investment (if it is intact a good investment) will pay its own mortgage and some, I do not want to be putting more money down than I need.

A number of home inspectors would appreciate the honesty to talk with you and potentially improve their inspections.

@Ashish Acharya and @Brenton Way Really appreciate your alls input on this, this is something I was not aware of that I could potentially utilize.

Am generally not a fan of inheriting tenants and if I do, I prefer that my lease be implemented, but clearl y that is not always realistic.Thank you though for this suggestion and I am going to try to see if working it from your suggested angle will work here in Colorado.In the end, I want to set up a lease that does not have holes, that an attorney, God forbid we ever have to evict (though these tenants do not seem like the type to cause any issues and I generally am a good landlord and stay away as long as you are following policy, so thus having a detailed lease that covers most all and then just backing off.My inspections are generally once a year, outside of the move-in, move out.I also stay very engaged in the running of my property, thus self-managing as in the end, I strive to provide a place I would enjoy living and I actually live on one of my properties.Long story short, don’t care for the very vague lease that the current property management company has running.Additionally I have little confidence in the way they were managing the property.The property has so much potential but has clear signs of neglect and I intend to change that as I never simply abandon my properties.On the question of current lease, I have combed through it repeatedly and do not see any mention of what happens at lease expiration only what happens when tenants are seeking to terminate their lease, “30-day written notice required”.No stipulation on what is required of landlord at end of lease and/or automatic renewal, both items that I cover in my lease and another reason, why am not a big fan of the existing lease.Leaves out a lot.I prefer having systems in place where there is little chance of misunderstanding, so thus the nerves on this one, but I will get through, thanks to you all for all your great advice!