As a buy and hold investor, I don't like them as they get wrapped up eventually due to moisture/water.

The existing tenants have mentioned separately (this is an up/down duplex) of smell of mold.This is not difficult to believe if in fact there are these obvious cracks on the home exterior.There is no doubt water/moisture is getting into the home and creating a condition for mold to grow.We had a structural engineer out to do our buyer’s inspection yesterday, report is due out later this evening (11/04/17).Verbal communication while on site, indicated a mutually shared concern over these cracks.The roof appears fine.A wall in the backyard will need replacing as the soil weight has almost pushed this wall over and it is only a matter of time before this thing comes falling over.Boiler may need replaced, windows as there is some clear cold.These are just concerns at this time but inspection report will lay all this out once received later today.I should have been a little smarter in not agreeing to a change in inspection objection deadline when it was presented by seller.My buyer’s agent and I should really have talked this one over, as I realize now that, it left us with only hours after inspection to come up with our inspection objection response and to be honest I will not have time to get bids for any of the extensive repair items which I do not doubt will be confirmed in the report received later today.Seeking any advice that you can give on the following: Would you proceed with purchase of the above detailed home?

Some are even building HUD homes with 2x6 exterior walls, radiant barrier roof decking, a full house moisture barrier, low-e vinyl windows, extra roof/wall/floor insulation and high efficiency HVAC systems.

The buyer of the house should expect some continued movement of the house as it ages, but can greatly reduce any future movement with proper maintenance of the property, including keeping soil conditions consistent, not allowing excess or lack of moisture. 

San Diego has much more moisture exposure than Phoenix, but Phoenix has more sun exposure.

Your only going to cause more aggravations and issues in the future by installing a product over an existing shower, just think theirs a lot of moisture in a bathroom, wheres all that gonna go, right behind the new shower.

That is called OSB ( oriented strand board) and is mostly used for sheathing on the outside of the house under the siding. the problem with putting Spackle over it to try and hide it is that the moisture from the Spackle may get into the board and start to de-laminate it. if it is only 3'-4' high, you can dress it up with some sheets of 1/4" bead board, if it's the total wall you can cover it with 1/4" drywall. look at it this way, there is no way a tenant will put a hole through those walls after you cover it, i would consider having that a plus.

Use a moisture meter outside and inside. 

If it was a flat surface we would simply install quarter round with clear caulking to act as the moisture barrier and keeping the flooring down.

It'll allow moisture in and the counter top will buckle and deteriorate.Upstairs bath has the cheap surround.