Your wager is not just wrong but WILDLY wrong. 

My recollection is (and insurance experts on BP can correct me if my memory is wrong), but most insurers will only pay "replacement cost"  policy limits, if you actually replace the damaged property.

An addition of soil, a swale, or a French drain may be necessary.● Part of the patio on the east side of the garage has a negative slope.

Pricing in DFW probably means you wont live rent free,and will have to pay your fair share of normal rent, but you also get 3 more people contributing to your loan paydown and you get to keep the appreciation.Buy hey...maybe I'm wrong....go talk to a local bank or credit union near where you live and get a term sheet from them for financing. 

However renting to the wrong section 8 tenant can cause you BIG TIME.

Am I wrong to assume this?

He tried to do patch work on this one wall with existing paint and it looked like a jigsaw puzzle :)  If you can't touch it up you're using the wrong kind of paint.

Again that's just my advice, there isn't a right or a wrong answer, it depends on your future goals. 

If you find something wrong with the property after you have an inspection, this is the point where you can negotiate the price or have the seller fix the problem.

Everything is going wrong.