On the other hand, if the tenant cleans up after the cats, keeps the very packed unit relatively clean AND pays rent on time, then I wouldn't get overly worried.

I am looking at a property on auction.com. it is an "occupied property" I have done the title work and it looks like I will get a clean title with the exception of the occupied status.There is clearly no one living there.

I have found that most people that I meet that still own their homes work really hard to keep their neighborhood clean.  

In most markets, there is what is considered to be a healthy level of inventory. 

The title company will not issue a clean owners title policy without the taxes being current.  

Clean the carpets and its ready to rent.

I am currently living in Mt Healthy any of you near me?

The property is returned in a clean, neat, and orderly condition, that there is nodamage, no missing items, all appliances are in working condition, and theproperty is “rent-ready”, including fresh paint, clean carpets, etc.e.

If the end-buyer does the title search, what happens if the title doesn't come back clean?

Clean up the yard and get is looking respectable.You can have all of the above done for less than $5K but probably more like $3K if the house isn't too big and you shop well.