Many responsibilities prevent me from doing that so I will have to do it from afar with visits strategically placed every so often.Specifically, I am looking at that data so that I can buy now, with the long term plan to move in about 5-7 yrs from now. 

Find a new lender.Educational reading: How Lender Overlays Prevent Mortgages. 

So if seller financing is a possibility should I get a lawyer to do the paper work and legal stuff or is it unnecessary?

We had 2 contractors look at this specific property and one of them said that the mold (mainly in the basement and attic) would need a standard removal plus a coat of this special mold propellent paint (idk if its paint but its some sort of material that prevents mold).

Fear of the unknown in the note market almost prevented me from moving forward and buying.

I have recently heard when structuring a partnership both the business side and the emotion side should be structured in order to avoid unnecessary conflict.  

It's got some stuff I'd really like to do to prevent further damage before it hits the market in a year or two.

File a civil lawsuit to recover the rent and unnecessary charges based on the breach of contracts listed above.

I have taken the approach with the property (so far) that I will hold it forever, and thus have been diligent on preventative maintenance.

For a number of years now, FHA has enforced a 90 day anti-flipping rule which prevents an investor from reselling a home to a buyer using FHA financing until that have owned the property for at least 90 days.