You generally get 5 years of trouble-free operation and you don't have the threat of expensive hidden defects like you would buying old/repo properties. 

I also notice a statement complaining that "now I am going to have to make repairs" meaning you KNOW there is defective/broken things, to an extent that nobody else will lease it without being repaired, and you intentionally neglected it and the tenant living in such, that is morally corrupt and illegal in many if not most places, add on fact of doing such to active duty service member I think is despicable.   

I believe there is an issue with the electric ground to the water pipe or it was built with defective copper.

Besides this issue, the location and house in general is everything we had hoped and planned for.If this is not the appropriate forum, please let me know.Sellers have to disclose all "material defects" which means anything that could affect someone's decision to buy the home.

How would you respond to a counter offer where the seller wants to cover roofing defects with liquid asphalt?  

The proper way to cancel a deal is to send a Notice of Defect along with a Cancelation and Mutual Release.

That ONLY implies, the manufacturers warranty against DEFECTS of their product. 

Sellers must disclose all material defects that may sway your decision to purchase the home.

As-is listings are common and Virginia is a buyer beware state.Even with that the seller cannot deliberately conceal defects, refuse or fail to disclose known latent (hidden) defects, or divert the purchaser away from the defect(s) with the condition of the premises.

Such as calling code enforcement to show defects, blackmailing to get the down payment back, etc.