There are specific requirements dealing with fire protection, fire resistant construction (fire walls, etc), egress, and other things. 

I'd stay away from SFH, Apartments, Retail, Office, or any real estate with four walls you have to maintain. 

A lender policy insures, basically, ability to foreclose and retain that priority.  

The tile doesn't look quite as bad now that the maroon carpet is gone and the walls are painted.

However if you have to replace the wall wiring because it isn't a grounded wire in the wall it is more.

Fist issue is safety, I have used idiots to rip out old carpet, scrape the floor of old padding, clean the floor, walls....I may not let them on a ladder.

i'd use the most recent service request / work order the tenant initiated (if any) as reason to follow up (via visit or in ur long distance situation, phone) with principalafterall, PM is only an agent between u 2, not a wall.

Great topic @Ben Leybovich I am glad I am able to be a fly on the wall to listen in on a full spectrum of opinions.

I worried the city inspector will ask me to open walls and inspect everything behind.

The other two walls are in fine condition (need a patch or two only.