You will have to get rid of them also!

My focus is growing my buyers list so I can get rid of some off market properties I have access to. 

If the property is not in a flood zone, and the mold buildup is light (and I assume it is because it's just the bottom of the wall), a diluted bleach solution can get rid of it.

I've since spoken with the people I would he lending to and said the money is there's if my lawyer draws up the contract and I am able to find out from other sources if these homes are of value they say or like you said Brian, ones they don't care to get rid of! 

I know I can pressure wash/prime/paint to get rid of that but I am wondering if I should just replace it straight away if it is going to be a rental.

Based on what I know of the system I would consider hiring them to get rid of squatters before enter the fray of the legal system.

Cash for keys now,get rid of them now without further delay and hard feelings.You are already making an investment here so give them enough money to move into another home and kiss their freeloading butts goodbye.Don't drag this out another month for no good reason.

But I had a big Norwegian one in my rental and it was a battle trying to get rid of it.Compare apples to apple, will the cost to remedy this problem be more or less then the money you will be losing

The insurer will likely require the tenant to limit their liability exposure by getting rid of the hazard. 

Don't make assumptions about someone's motivations or about what sort of price they will accept, etc.For example, I just wholesaled several houses that had 100% equity, and the owner was extremely happy to get rid of them for about 40% of ARV because they needed work, and she owned around 30 rental properties with bad tenants and had no interest in dealing with the properties anymore.People have all kinds of motivations and you don't want to make any assumptions.