If you have the cash and you want to buy a personal residence, it sounds like you have sufficient capital and income to support a new (modest) house and the losses you will incur on the condo. 

This may be sufficient for the total down payment on the next deal.  

If this is the extent of the damage, and there is no underlying/ongoing problem, then cutting out the loose material and spackling should be sufficient (and painted of course).

A simple letter stating that it is your intention to terminate the contract and that it will serve as your 30 day notice should be sufficient.

It will payoff in the long run.Suggest managing the business types in the center AND getting sufficient parking - - these kill accessibility and traffic flow.

The latter is not sufficient for recording, but is more readily available.I vote for @David Krulac suggestion to request DC from funeral director.

Is reasonable suspicion sufficiently rigorous to justify an eviction with this clause even without a police report?

This is known as the self-sufficiency rule.

The most important characteristics, for me, in selecting a tenant are (1) stable job and sufficient verifiable income, (2) at least a mediocre credit score (600s, I have even accepted 500s, but will never go below that), and (3) general vibe of how much they want the property and how long they intend to stay - with #1 being the absolute most important. 

This is known as the self-sufficiency rule.