A deck off the house goes to within a few feet of the creek bank.The creek wall is 10' to 12' foot high off the back of the house.On the other side, the creek back slops gently up into the woods, so no concerns on that side. 

Conduits and panel is exposed to moisture.

It's a lot easier to scrape, clean and repaint a block wall in July when your moisture in the ground is much lower.Another selling comment - make sure to disclose the seepage on the property condition report.  

This is easier to maintain than messing with paint due to high moisture / humidity issues. 

I've found guests to be very gentle on the place with minimal cleaning/repairs needed between guests.there is a service called pillow at least in SF that will handle everything for you.

An engineered wood floor of good quality( not the box store 5/16 garbage) would be a good choice and handle the temperature and moisture extremes better.

Sometimes gentle persuasion works.

It would be my guess the vinyl hasn't been keeping the water out either.Bottom line is that no siding is going to be completely waterproof and you want to do your best to keep any source of moisture away from the home.  

However, it is a potential weak spot as it is very susceptible to moisture damage and there is a lack of accessibility to make any repairs which is why the GSE's will not underwrite them.  

There appears to be some stains indicating seepage.We just did this kind of foundation repair on a house with steel beams 6 ft oc with an interior moisture barrier and an interior drainage tile with a sump.