All of thos surfaces can absorb odors. 

An encapsulate isn't a paint, it's a special coating that has to be applied to a specific thickness using a special gauge only after a specific test is done to the surface to be encapsulated to be sure the paint is sticking well enough to the wood to be encapsulated.

A lot also depends on your track record and how much skin you'd have in the game.  

Third, if you rent the place out with all these problems hanging over your head they will surface at an inopportune time and now you will have renters not happy that their is no hot water and all the issues that could arise.

Your skin in the game is 13.5K down plus about 3K closing plus 4.5K repairs = about 21KYour cash on cash return is 850 x 10 (not 12, to allow for vacancy and expenses) = 8500 / 21000, which is more than 40%.

I also like the fact that they are 30% invested so they have skin  in the game.        

I am wondering whether your team in Nevada has "skin in the game" when you do buy and flips?

Although I don't have any skin in the game yet, I've been researching and learning about the Edmonton market for the last couple months so I can give you a short list of some of the free resources I've been tapping into to get myself started in the industry.

But before that and if the floors have a decent finish (so the cat urine is not absorbed and penetrated) you might try cleaning/sealing the walls and other porous surfaces first. 

Thus this deal would have to be done without me putting any skin in the game because I simply don't have it.