Kevin,I had the same issue; Washington DC is nearly as expensive as LA.

I think the biggest issue is managing expectation and nail down the value of the property now rather than heartache later.

Hey guys,We have the opportunity to pick up a vacant apartment building with 10 units but after talking with many different lenders it seems that nobody is willing to finance a commercial loan on a building that is no...

The owner has family issues by dealing with it, you don't.  

I currently have someone else working on a binder to see if  they'll cover it, but just wanted to see what others have dealt with in this topic.. the small research that I've done on cloth wiring has shown that it doesn't seem to be any real hazard or even necessary to replace unless if there are apparent issues with the wiring.

Issue a late statement and fine and continue to follow-up. 

If the lien holder is paid off in full then there is generally not any issues there!

If I just issue a credit memo how do I DR the balance in the tenant security deposit?  

Plus with the condo association taking care of most anything that goes wrong your management fee and time dealing with issues at the rental property are very much diminished.

@Joshua Dorkin, I have been running into similar issues but mine are on and off as of late.