.- I am sympathetic to what I believe are real health concerns by the tenant's parents, but i can't figure out how they can be tied to the house based on the mold test results or visual inspections completed by the management company's maintenance team or abatement company.- based on what I feel was an unreasonable counter I'm not sure how to frame my response to the tenants.My questions for the BP community:- Could I be missing something causing real health issues?

You really need to understand and visualize  how a rehab is going to be done.

No, no laundry there, but there's definitely space for storage, although the basements were pretty clean, when I did my visual walk-through, before purchasing the 4-plex.

Again, I'm a total newbie so I am well aware there are plenty of things I'm visualizing incorrectly, which is why I'm here asking for help :)

@Elijah FastYour lender and possible your insurer will require a Phase 1 assessment .... this is predominately a visual inspection and paper exercise (costing anywhere from $750 - $2500) with the objective of discovering any potential contamination of the property (or demonstrating that there is none).An abandoned underground storage tank (UST) is something which should be disclosed by the vendor (it appears that it has been in this instance), but it is an example of the sorts of things a Phase 1 ESA looks to discover.Depending on the results of the Phase 1, you may very well be requested to continue with a Phase II ESA.Having a Phase 1 lets you know what you are walking into ... which is why lenders want them.  

or "subject to visual inspection" however you want to add it in the additional terms on the purchase agreement..  

You get a quicker sale because the buyer can literally visualize EXACTLY how the house will look.You'll find REALLY cheap and Nice stuff on Craigslist.com & your price can cover the costs.

I can appreciate the effects of visual deterrence.

Here's a visual. http://www.forbes.com/lifestyle/2005/05/26/cx_sc_0527homeslide_10.html?

If you can visually inspect the foundation at the point the water is entering, you can get a better idea of what is going on.