You cannot refinance the option later should you need or want to maximize cash flow or pull out equity.

Definitely fix the water and mold now or it could be a way more expensive issue later, and you don't want city people and permits and legal/local governement stuff involved.

One year later, i wanted to provide an update to my original post.  

An 8 month pregnant lady fell along with the stairs and was found several hours later by her spouse unconscious beneath the pile of rubble. 

Sooner or later, this property will have to be developed- it is 60 years over due and in high demand by the city to be cleaned up.I will just keep praying to God for that one miracle.Bob

But if not, you have the option of doing the 203k and then refinancing later to shed the PMI. 

"Get things done" not later or tomorrow.

The guy was a scumbag and 30 years later i can still recite his full name and address.  

More and better housings will come later but I would like someone to let me know how to do this in a few ways.

Received approval of offer 2 hours later.