I think you need to determine if that is being caused by a leak of some kind or whether it is just mildew that showers and tubs commonly get.

In 2009 it was determined to be occupied.Commercial Inspections.

ThanksGreg You didn't specify the upside nor speak of a value add play in the deal so it's a little difficult to speculate how to best structure a creative financing package.Assuming it's a value add play with good risk adjusted gains at the end of the process then maybe the safest route is to negotiate a wrap transaction with the seller, and if your are concerned about a due on sale clause make it contingent on the lenders approval.The seller will confront these same financing scenario issues with all other buyers so if they want to sell the property then they can either deal with the issue with a reset and able buyer, you, or kick the can down the line looking for another buyer who maybe willing to assume a less than stellar financing package.As the buyer though your only concern should be the financing package that delivers you title, assuming you plan on making extensive improvements to the property, and allows you to earn what you determine is a reasonable cash flow from the project.Options aren't bankable.

That will determine your return.    

I'm just trying to determine how I want to proceed.Thanks for the feedback. :)

In short, I would say that your commitment level should determine what strategy(ies) you decide to implement. - Jeff

You want to see what types of HELOC products a bank in your area might have; the limit of the line will be determined by the ARV of the property.

you first need to determine if there enough equity to warrant all the effort.I suggest secured debt < 50% LTVHere's my format:PropertyEquityTitleInterest(s)OpportunityNo one dies without any heirs.

Or is there a certain geographical region that you’ve determined is your best use of resources and time?

It is an emotional roller coaster that you need to be determined to stay on till the end.