If it's on the perimeter it may be due to moisture or termites.

Talk to a mold remediation person.  

@Danny Lyu  If you're getting 10% down on that loan product, I would definitely do that and just close in your personal name. 

A nice looking finished basement will go south real quick with moisture and your tenant will soon be displeased (rightfully so) about the nice basement they initially thought they had.See what the market is doing, but also consider what your specific property factors are. 

You should use a moisture tester on all the lumber and make sure it is dry before drywalling. 

Large non-refundable EMD will overcome not seeing it in person. 

I guess the mice have chewed the insulation.Additionally, the drywall at basement detected moisture.

This would require tenancy in common which lenders typically won’t allowTransferring ownership from personal names to LLC is straight forward with a deed transfer and re-assigning the tenant leases.

SPC is great for moisture-prone areas like kitchens and baths, while WPC is softer underfoot and ideal for main living areas.

It’s also water-resistant, making it great for any spills or moisture issues.