To run or stay...bad inspection and house pre-rented ACK

[Avery Bernstein]

We own a house.  1600 Sq Foot FULL of stuff.  Genuinely need to declutter.  On 1/3 acre in not-so-hot-not-toooooo-bad neighborhood in city.  As-is could move for about maybe $80/85K.  Maybe.

On 2/14, cruising Zillow, find house in same zipcode on 3 acres for $89,900. On market 4 days.  2/1.  Great kitchen set-up.  Very convenient location for family.  1193 sf. I tour.  Do prequal that night, take DH the next morning to see at 8:15am and make offer 2/15 at 11.  House had been under contract once before (the WEEK before) with multiple offers, and it fell through in 2 days.

Our offer is accepted at 8:45pm 2/15.

Monday, 2/17, our Property Manager shows our NOT-ready-for-showing CURRENT house and rents it THAT NIGHT for $1100/mo.  Renter signs Binder and gives $400 deposit NEXT DAY.  Now...we are in a binder.  lol

Mortgage is expected to be $710.  

AND now we will have 3 acres, of which we meet with the city TOMORROW to pitch them our future development plans of the back 1/2 of the property.  AND we will move into the smaller house (but has an immense about of storage).

Inspection was Tuesday.  It was bad.  Mostly...all stuff we knew.  Most fixable.  Planning on asking for the moon in allowences from seller. No feel for what they will say. 

Husband is like "WHAT PART OF THIS REPORT DOESN"T SAY RUUUUUUUN TO YOU???"  

How bad do you expect the Inspection report to be?  If you knew most of it could be fixed before you moved in...would that change something for you?  How about future development plans?  

So much going on.  Due diligence ends 3/9.  Closing is set for 3/20.

Mind just swimming.  Thank you.