If it was the flashing, most likely it would have resulted in ceiling penetration on the top floor unit.

next time you damage your wall board seal it with guardz primer...like a coat of clear penetrating glue.

My main concern, possibly because of my lack of experience, is this moisture in the basement.

(As an aside, I would also order a mold/moisture check to make sure there really isn't a problem.)Two caveats, though:I'm not an attorney, nor am I giving you legal advice; This is what I'd do.We rent in the great State of Georgia, where the laws are decidedly landlord-friendly.

Well, if I was seller, I wouldn't allow an inspection without an accepted offer.However, you should see it in person to look at things that are expenses like:1) Siding and paint2) Roofs3) Windows4) Paving and grading5) Any evidence of moisture invasion like warped boards.6) Is it sited well and have curb appeal?

After removal of the drywall and floor coverings the wood structure and framing would be treated with a surface applied water-based encapsulating sealer to help prevent the release of any odors that have penetrated into the wood components.

If they are laid on a cement slab, some moisture might be present under the slab and being pushed up through the cement and seams.

@Heather Schmidtknecht I know that moisture in basements can be a common problem in a few states but it is still a big deal.

I have no concerns at all about water penetration and mold there now.But the inspector revealed something regarding mold to the buyer's because their agent asked my agent about it. 

I've heard you can't stain pressure treated wood if its still "wet", as in the moisture content is high the recent pressure treatment.Wood isn't that cheap, but I still have to remove the old boards and install the new ones, speaking of time.