I know several creditors rights attorneys who deal with servicers daily and from what i'm told they are getting more aggressive in seeking deficiency judgements, especially if the borrowers signed PG's and have assets to go after.

Given an average of a few inches of rain hitting the ground even in a pretty big rainstorm, it is unlikely that the moisture in the basement is from the rain water that hit within the couple of feet next to your foundation.

I think I would want to try to negotiate a 6 month term where he agrees to manage for a fee and show me the ins and outs of the daily operation so I could manage myself or know what to look for when hiring a PM.

You can diversify, can watch it daily from anywhere, and even manage it yourself online.

If not, perhaps steam/moisture from the shower is causing a short-Check all the other connections on the circuit while you're at it-Is there a leak behind the wall coming from the bathroom and getting to the GFCI wiring?

I prepare CMA's on a daily basis.

Hyde on you later and call you twice daily for issues that aren't actually the responsibility of the landlord or something), but fines for noise complaints, trash, etc., are a vital tool to keep harmful or unwanted behaviors in check - especially when they're discussed up front in the lease, since they can then become a screening tool themselves.

The unit is located on a road with average daily traffic of 30k cars, 1/2 mile from road that gets 50k+ cars a day.

Your landlord/tenant laws should explain what is required of you, likely some itemized list of the extra charges you'll incur as a result of the cancellation and daily rent rate for how long it is vacant, and there's likely a deadline, like 30 to 45 days, for you to send it and the refund back to the tenant.  

They said their equipment measured a lot of moisture under the carpet, in the floor and ceiling. the cheaper quote was 1700 to pull up the carpet, clean up the mold (if any).