Correct them right away and tell them cleaning the bathroom is a must, but also that mildew is not harmful.

Last thing you want (even with insurance) is to have a major problem in the unit, which harms your potential tenants.

so I don't see any harm in waiting as it is stabilized with a tenant who is a neat freak and likes the place.  

If I am cautious about the big ticket capex items(roof, heat/air), what is the harm in purchasing these types of property?  

Not sure if he service in Vancouver, but no harm checking with him.

It'll be work to litigate later and you'll have no proof of intended harm.

No harm in letting them know you are the designated "property manager".

You have a lot of leeway when it is an urgent issue harming people or property, but this post-emergency work can vary.

The #s sound too tight for comfort/aggravation.I would determine what # you need for the amount of investment and aggravation involved in your chosen scenario, and then make an offer to the bank for that amount (or a little lower, expecting some negotiation) for the short sale #.Basically, if you're willing to walk away anyway, there's no harm in throwing out a # you would actually want the property at, especially if you already have a line of communication with the bank.They say in a negotiation, "(s)he who cares the least wins".

If they slow a house closing over a lien and they lose they could be in for a rude awakening if you can prove you were harmed, which you can.