What I got must be cleaned with a PH neutral cleaner and does not stand up well to lots of moisture.

I would gently tell them if they would pay you half rent you would not start the legal documents to obtain last months rent.lets say rent is $1200.   

My Concern is there is clear proof that the first floor ceiling had a 4 x6 ft repair as Seller claims is from AC Blower replacement causing issues.The last Home inspection cleared the Townhome had no moisture in a couple of places where previous inspector suggested wet spots because of poor job (ethernet cable from exterior to a bedroom) and HOA related issue.This townhome also has various sink rust related leaks and caulk based fixes. 

I am especially concerned about mold and rot risks from moisture getting trapped between the layers of siding, and having this damage the structure.My final question is whether it would be worthwhile, over the course of the summer, to re-side the house so that there is no layering involved.

Make sure all windows work properly, make sure all doors work properly, check for potential foundation issues and moisture issues with professionals not just the inspection guy.

If it is in a hard to rent area, then it might make it easier to rent.Check if it has been painted, if not, cover the flooring, spray it down (use a mister), wear a mask and safety goggles to prevent breathing it in or getting it in your eyes and then gently scrape it off. 

@Colleen F.When you buy pressure-treated dimensional lumber in Arizona, although it might come out of the same mill (it doesn't, usually), it is typically not the same wood species and it is typically not kiln-dried to the same moisture level as it is in Little Rhody.The wood species that deal best with the higher levels of dryness are more resistant to the pressure-treatment process compared with others.

Drive bad where they see your speeding a bunch and or on autopilot and spacing out and it has to kick you off.. or using your brakes a lot.. in normal driving these vehicles you simply never use your brakes or at the very most its a gentle tap when you come to a light the car slows down quickly with the electric motor and will come to a complete stop.. the auto pilot is genius too great for long drives or in bumper to bumper .. it will come to a full stop and start again allowing you to relax in bumper to bumper  I bought my first one when i got an email ( 2016) where they were having a great lease special ( only 2 years) they were trying to make numbers. 

I am in contact with them currently in challenging (very gently) in their argument that this is a federal guideline versus a preference for their particular bank.

They might recommend installing a drop ceiling or dry-walling over the existing ceiling to seal it in because bathroom paint is prone to peel because of the moisture present.