Do you think there will be an issue with the appraisal if they cannot check the water?

I punched in $600/year for each of those and got these numbers on your place: Mortgage Rate 5.00% Length of Mortgage in years 30 Monthly Mortgage payment $0.00 Taxes $ 50.00 Sewer and Water $ - Trash $ - Heat/Utilities $ - HOA $ - Cap Ex and Ops $ 150.00 Insurance $ 50.00 Mgmt Fee $ 60.00 Vacancy $ 48.00 Total Expenses $358.00 Total Revenue $ 600.00   Cashflow/month $ 242.00 Cash on Cash Return 14.89%

If it was water you would be swimming or drowning in it.

I was excited about the AirBnB route because it will allow me to landlord without really being a landlord, but that looks to be in questionable water now.

I would think that mold would be excluded, as it wouldn't be a "sudden" event, and it would be your responsibility to dry up/remediate any water issues.  

Adding to @Aaron Montague 's bathroom advise, I would also recommend you go with a 60 - 80 gallon, quick recovery water heater.  

The help community here can definitely you navigate the REI waters.

One is where the window did not close completely, so to keep water and drafts out the plastic is taped on.

If it's vacant, assume the plumbing is gone, and possible the wiring, furnace and water heater.

The help community here can definitely you navigate the REI waters.