They inherited the property from his father, ran the home for many years, are facing some health issues and are retired.

Also, put any repairs pointed out by the inspector into the following categories (by priority)1) Health & Safety - to avoid tenant injury and potential lawsuits2) Property Preservation - to stop further costlier damages3) Government Required - city inspection repairs & S84) Marketing Negative Impact - who'll rent a house with purple bedrooms?

Then use that report as a guide to what else really needs fixing.Also, use this guide to prioritize repairs:1) Health & Safety issues2) Property Preservation3) Goverment Required (S8 and city inspections)4) Marketing negative impact5) MiscellaneousAlso, keep in mind YOU are NOT living in the home!

Your retirement and health costs alone will eat you alive.

I wish you great health and happiness. 

I also agree that it is the wrong response to ask them to put TP in the trash, that would be a health hazard.

DEFAULTS Tenant will be in default if: (A) the Tenant don’t timely pay rent or other fees and charges they owe; (B) Tenant or any guest or occupant violates this Lease, property rules, or fire, safety, health, or criminal laws, regardless of whether or where arrest or conviction occurs; (C) Tenant abandon the property; ....When Tenant is in default, the Landlord has the option to declare the entire balance (all outstanding balances including but not limited to invoices, rent, cost due to damages/abandoning the property) payable hereunder to be immediately due and payable; the Landlord may exercise any and all rights and remedies available to Landlord at law or in equity and may immediately terminate this Agreement.XVI.

What do you think stagnant $/sf values alongside rising rental rates & absorption mean for the health of the market?

The aids health foundation is sponsoring, to the tune of in excess of $10m, a proposition (prop 33) to over turn Costa Hawkins.  

If you sell because of health, work, job, or unforeseen circumstance you can get the section 121 even if you sell before 2 years.