Mold (externally) and termites are the responsibility of the HOA association and should be taken care of by them. I don't think this effects your tenant, however, you must disclose these issues to them so they are aware. Some people are allergic to mold, so it would be an important thing to make any potential tenant aware of.
Yes an updated property will likely fetch a higher rent but make sure whatever you do is easy maintainence for you. Once a tenant moves out there is always deep cleaning that has to be done and often carpets have to be replaced etc. This is something you have to anticipate when renting. I would also advise you to read (study) the california Tenant and Landlord Laws available online @www.dca.ca.gov