I agree with others, install a high performance bath fan since this is an going problem.  

Also, the labor partners just didn't perform as we expected them to. 

Either way we choose a structure that would give a balloon payment 3 years down the line figuring that I could get the asset performing to that level by then to make the numbers make sense.

In our dealings with helping other investors we have found that some are happy dealing with B asset class performing at 6 caps or higher while we also find some others who are ok with dealing with D asset class properties that can perform at 15-20 caps.   

The seller bought them not long ago for about $750K and has performed renovations on the buildings. 

If you are not happy with their performance, there is often not much you can do.

If NOT occupied, I'd go the route of a normal, good performing agent who you can be confident will get the deal done, get you the best price, etc. 

I wonder who performs their inspections and how reliable they are.

One thing to remember with commercial loans, not only does the property have to perform, but generally you have to have the net worth at least equal to the loan amount most times there is some type of liquidity requirement too.

If we perform an inspection where a tenant does not have the smoke detectors (or any other tenant damage), we take pictures and send a 7 day notice to cure letter.