CA taxes residents on worldwide income but may provide a credit for taxes paid to other states.

If so, use one account as your operating account and the debits and credits are booked to the applicable cells, then consolidated to the one account for banking. 

This is why starting a business with "no money, credit, or business experience/savvy whatsoever" is a (I really really want to use some foul language here) joke. 

You may be able to do the repairs yourself, but I'd encourage you to get the professional pest company to guarantee their work on stopping the termite issue.And, as others have said, depending on what the inspector finds, you can try to renegotiate with the Seller, ask for a credit, or choose to walk away from the deal.

And if their credit is trashed and they fail to qualify for a new place, then what?

For example, minimum 650 credit score and 3x rent for gross income.

Reason:  Want to access equity for new business but credit not good so selling and finding a rental not a good option. 

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

The DC area is one of the lowest cap rate markets in the country.In MoCo you'll generally need a 40-45% down payment currently to have your rent cover your PITI on a standard long term rental.

Credit?