We buy a lot of non performing loans.I suggest to newcomers that they invest with an experienced flipper, fix and flipper, do at least 3 deals and understand the terminology and the way business is done before you venture out.we only accept accredited investors that are highly sophisticated

(I have no experience here)* people just accept the high assessment because they also like the higher property values relating to that?

Praise the good attributes of the home but respectfully express your concern for the current condition and ask if there is some help you can offer.

But they're not compelled to stay or accept the rent increase either.

We offered and they accepted.

This happens periodically and could end up with you either accepting the same sub par returns on your REITS as your rental portfolio. 

Is the Only Way to Negotiate a Lower Price with Builders is to have a pain in the butt inspector find a laundry list of problems and meaningless in the grand scheme defects to compel them to cut their numbers to move to acceptance and closing?

Is it fraud , no they are telling you the cost up front , you accept or decline . 

Let her know what you know, that it's not acceptable, and tell her she can go the easy way or the hard way.

Both of these options "should" drive your premiums down a good amount, and hopefully to a more acceptable level.