Is the thought that they were deliberately deceptive?

Based just on what you have posted I can't see what your legal argument would be unless you are claiming fraud and deliberate deception.  

Clean the place up, bump it up to market rate, and be more deliberate when screening in the future.

@Danny Mestas After much deliberation I’m keeping my house with just about that cash flow I was going to sell and reinvest to double cash flow but realized it would turn a paid for asset with $850 cash flow to about $400,000 in mortgage for a $1,700 cash flow and I decided that was stupid.

There could be major problems with it or they deliberately priced it low to get a bidding war going. 

There's a bit more deliberation that went into it (no W2 = no loans so you need to have investors willing to sign on the dotted line.

So I've been shopping around for best rates with several lenders (Bank of America, JP Morgan Chase, and Citibank). 

I wish I could remember who said something like "Use your profit, but never spend it"- take a shorter, and much more deliberate vacation.

If she complies, you will walk through to ensure nothing was deliberately destroyed or stolen and then you'll hand her a full refund of the deposit and drop any other charges.

After much deliberation I think this will be the best option for myself and my family.