I have heard from people I know near the fires (including one who's house is the only one left on his block in the Palisades and one in a similar situation in Altadena) that smoke damage was not covered by their fire insurance..Hard to say what I'd do in your shoes since it sounds like it's more than a financial investment.

There's currently a tenant in the house (who I presume caused the smoke damage), but the seller promises that this tenant will be gone before closing.

Tenants must receive; signed Certificate of Rental Suitability no more than 60 days before move-in, Partners in Good Housing Pamphlet, Lead Free/Safe Cert (if built before 1978), smoking policy for multi-unit properties, Bed Bug notice as you describe above.For Pennsylvania: It's also best practice for property owners to include a lease provision that waives the Notice to Quit requirement of the PA Landlord Tenant Act.

Quote from @Micheal Smoke: Hi, my name is Mike Smoke, and I'm an aspiring real estate investor focusing on multifamily and Section 8 properties in the U.S. as the barrier to entry is much much lower in terms of price compared to Canada and Funding options. 

I learned everything I know by hands on experience with active investors also. showing up at local real estate meetings and finding the people who are actually doing real investing, not blowing smoke up your.... and saying they are investors.

Inspect appliances for age and condition,and look over the flooring for any damage.For tenant considerations, evaluate the unit layout for functionality and storage, and check for safety features like smoke detectors and secure locks.

Evidence of smoking. 

Ie Pets / Smoking / Parking / Terms / etc ? 

The whole thing is smoke and mirrors.

The cost is minimal and I am smoking the closest competitors in my market.