While it may (or may not) pick correct comps as far as square footage, beds, and baths, I doubt it knows neighborhoods--sometime just crossing the street makes a huge difference--or condition. 

The most basic and logical explanation for something is often correct, but proving it can be a whole other ballgame.

With mold issues it is always a two part question. 1st is has the mold been remediated and 2nd and most importantly has the issue been corrected that allowed the mold issue to begin.

You are all correct it would not be a short sale.

I am still deep in the research phase of real estate investment and would love some guidance on what path to take. 

You are correct the oil boom has caused significant increases in property costs here.  

Let me make sure I understand you correctly. 

I remember reading that one of the units could be commercial space as long as it is less than 50% of the building, but I cannot find any info about this on the cmhc site.Am I remembering this correctly?

Correction: that should be valuable not available in "my understanding is that the more valuable... 

However if you're positive this area is doing well and it doesn't have:Population decline or stagnationCompanies leaving the area with none taking its placeDeclining average incomeRising average age of populationRising tax delinquencies or foreclosures I would only take the leap if you understand these and there are still risks such as the aging property which might have a lot of deferred CapEx work which will eat up profits if not forecasted and budgeted correctly.