The key is will the remediation cost fit within your Rehab budget.  

It also provide you the opportunity to negotiate who pays for the remediation.  

We have to give her 7 days to remedy, in writing, so that’s what we will do.

In those cases, it is important to act fast when you realized you made an error in judgment  and remedy the situation as soon as possible.Just remember that someone who is renting is renting for a reason.

Long story short, we will be displaced for 2-3 months during remediation and I have a usable rental that my tenants won’t need during that time.  

Pouring a liquid down the drain line doesn't really do much especially if the lines are clogged or blocked.. after snaking the lines try to use a product that will foam up and fill up the lines.... there's home remedies and store products that you can buy that will work.Lights flickering could be as simple as tightening the light in the socket.

You also need to be very cognizant regarding mold readings and remediations especially if someone else oversaw them .That said, if you have deals like the one above in Houston , Phoenix or Vegas  I would love to see about acquiring them as long as the numbers and Mold facts can be backed up.. 

As you state your intent was to double-close - a universally legal way to wholesale - you may have some of the same remedies available.If your losses amount to enough that it's worth it to you, I'd talk with a local attorney.Let us know how this all works out. 

Just got a bill from the owner of the property for close to $3K for mold remediation. 

This would fall under the seller not being able to deliver clear title and is covered in paragraph 15 as I recall.....the full remedy is return of the EM.