I would probably also find some narrow shutters for the dormer windows, in black.

Off-market is always a plus because there can be a window of time where competition is minimal/non-existent.

This may be repeating what they told you, but perhaps not:Has the manager checked to see if the door is unlocked and keys may have been left in the mailbox or inside the property, visible through a window?

If the condo association wasn't maintaining the common areas (AC units, windows, pavement, roof), it was a sign the board might be bad.My current condo board is pretty good, but slow to respond.

I am fairly handy, and I can install cabinets, countertops, toilets, replace windows and doors, etc.

One question though, if I do not permit myself to have a key, how am I supposed to lock them out or be able to get in without breaking a window/garage door/heavy man door?? 

My experience with HUD homes is that the bidding is pretty competitive once the owner-occupant window is up.  

Frankly, if there is no significant damage associated with the cat, then, there is nothing to haggle about or risk losing more money and time in court.I imagine you would have absorbed the repairs caused by wear and tear over the time they inhabited the house.The overall consensus in this thread is that you should just let it slide and move on to more important things.

Many gurus teach to have a separate lease agreement and option agreement  and call the down payment " option consideration", but I can tell you from experience that if the tenant buyer wants to fight you in court, the perceived benefits of structuring it this way are out the window.

(those two white areas are reflections from window)  The floor is still in perfect shape, and has been in for 10 years.