I have managed the odd puddle here and there after 50 years of cat owning. The tenants did not, and now it's into the wood, etc. Cats do this when they are distressed, ignored, or have a territory dispute. And even if you think you got it all - bleach, etc - the next tenant may also have a cat that becomes distressed because her little nose can smell it.
There is no easy fix for this, and that is coming right off your offer - including your down time to fix it (when you should have been getting rent.) We are talking MAJOR reno - no cute little environmentally friendly fixes here. Insurance firms know firms that can fix it, but let somebody else do the easy fix. You don't want to fix what they overlooked a year later.
Another reason to take the high road is because neglected cats can pick up infections that can be passed on to humans. You REALLY don't want to be involved with litigation from a pregnant tenant. Do the right thing.
540 487 0480
Lofton Leasing, LLC
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As for being crazy, as long as the price is right buying rental properties righ now is an EXCELLENT idea. In my area there is an absolute fire sale on multi-family short sales. Furthermore our rental market is RED HOT! I am encouraging all my investors to look into Muilti-family Short Sale properties as an avenue for real, fast and substantial income producing properties. Yes, you will probably have to do some remediation (like taking care of cat odor), but if you are careful you will not only recoup your rehab money but you will have made a wise long term investment.