Where you're currently standing then create several plans of action with the positives and negatives of each.

She also sometimes pays in partial payments which I've addressed several times.  

It is partially rehabbed but 2 of the rooms are severely covered in mold (bedroom and basement). 

And you own several properties throughout AZ and CA and the notes?

So, you'd need to determine if those costs are worth the benefit of building up that bit of equity during your time in San Diego and if you'd be willing to subsidize this property as a rental because you didn't have to put any cash down (Darrell in the linked article mentions this, though his scenarios were more like $100/month versus several hundred, if not $1k+ if you can't get that much rent).Obviously, the numbers change if you can find a property at a better price, a multi-family where you can rent out the other units, or are willing to relocate to a lower price area but because you mentioned wanting to stay in that neighborhood due to family, I stayed in the 92124. 

And whether it is labeled as an Attorney Fee or Doc Prep or something else on the Settlement Statement, the borrower is paying several hundred dollars or more for it.

@Paul YousefI had to read your post several times as I thought my eyes were playing tricks on me.

He missed two large cracks in the basement, a severely bowed piece of wood above the window in the same bathroom that needs to be reinforced (probably another 2k), the washer wasn't working, etc. etc.

There are several advantages that I see .

So the next time you guys have a severe post closing issue don't just fold and give up because it says "As is"