For those counting in California (Riverside County at least), we would not be responsible for any utility bills that are unpaid prior to our assuming ownership unless there was a lien placed by the utilities on the title, in which case that would have to be cleared.

We're completing the inspection process today after an extension on due diligence so the seller is expecting to hear back from us shortly.

They didn't ask, for an extension 'they knew' that's when their lease was up because they moved in that day of the month.

Figure out your goals, how you want to utilize REI to accomplish them and utilize your strengths to select which method as there are tons of ways to make money in REI.   

When utilities (maybe just water) gets turned on, city requires an inspection.

I've also noticed he's (HOA president) doing extensive home renovation on his unit.

We manage a lot of properties for investors that utilize Realtors very successfully

If they aren't at market rate,  yes raise the rent (QUICKLY before WA passes some form of rent control)  and if the current leases don't bill back for utilities,  consider putting that in place.  

In our case, we had an assessment of thousands of dollars for each condo once because utility bills weren't paid for six months and we were threatened with a building wide shutoff. 

The sellers have been dragged along to long and are unwilling to do another extension forcing this buyer to be exposed to maybe $500k in tax liability.