There is such thing as normal wear and tear and if you hold her security deposit longer than 30 days after walk through, you'll meet her in court and the judge will support the tenant.Just collect her last water/sewer if by the lease it's on her, and move on.Market is hot now - you'll find next tenant before this one vacated the house.Good luck!

Now the second month in, one unit reported mold on bathroom wall and very small puddle of water on the floor outside the bathroom.  

When I purchase a property, I usually have to bring some money to the table. 

If the appraiser knows that the seller on 123 Main St disclosed a jenky water heater and water damage in the basement, he can/will adjust for it when doing your appraisal.

What did you find was the biggest hurdle getting to closing table?

Think of it this way: if your rental needed a new furnace or water heater - LLC would pay for that expense and it would not be prohibited transaction.

Major fixes from inspection are 1) New roof, 2) New HVAC 3) Repair fireplaces 4) Water Heater.

About a month ago we stopped receiving hot water in our showers.

About a month ago we stopped receiving hot water in our showers.

Great list of options by @Michael Glaspie  but I'd take #5 off the table.