Your borrower might not care anymore.Check for any recorded mechanics liens.

How is the roof, the mechanicals, water issues?

The irony is most investors who form LLC's do not operate them correctly, fail to obtain appropriate types or amounts of insurance coverage, fail to understand their coverage exclusions, take short cuts and don't obtain permits, use unlicensed and uninsured vendors,  fail to execute contracts with same vendors, don't understand the mechanism of additional insured status, indemnification etc. and are actually more prone to claims and conflict with their LLC than the individual who does not own real estate in an LLC but understands these tools I mentioned.

He once told me that he didn't understand where my desire to work with my hands and become mechanically inclined came from.

@Mike H.check out triple net leasing as to the mechanics of why almost 100% of hospitality and commercial properties are triple net leased.The main reason people NNN lease their property/s to businesses is because they want to own passive investments not actively manage another business.Very few if any investors manage the Hilton hotel property they own. 

Hey there, I'm avidly reading about wholesaling in Canada and I was wondering what are the mechanism in place to protect yourself as a the wholesaler if the buyer doesn't come through or if the deal falls off.

No formula can be accurate across the board because even “cookie cutter” properties next store to each other differ as to view, location to the street, topography of the land, lot size, physical condition of the property, past remodeling, quality of the mechanical systems, sunlight, utility bills, past use, etc.  

A little context: the building is structurally sound and they have done major updates such as septic, generator, and sprinkler system, and all mechanicals are recently inspected and tagged.

I'm just trying to make sure I understand the mechanics of how this works.

I'd look for signs of arcing around those outlets.Other things I look for are how is the foundation, cracks in the walls (assuming lath and plaster), condition of the mechanicals, depending on what the house is built on, I may get a radon test done for the air and water (near me there is a lot of ledge, so radon is an issue in most homes).