Their idea of "fixing" this ended up being a fresh coat of paint to hide the rot.

I'd be my own GC if all it needs is a coat of paint and new carpet, maybe a new roof.

I would get it matched at SW and repaint it - 1 coat A100 in whatever sheen it's already painted (looks FLAT from the one photo). 

I am not going to sugar coat it, but your loan paperwork needs to be figured out and on its way for pre-approval before submitting an offer out here if you want to have a chance.

Get a thicker roller cover and roll it slowly up and down the walls as you paint.

Kicking one out would have meant that they both would have left, and at the time I felt that just the thought of this would have kept me up at night...But after thinking to myself that I may eventually have to remove someone from the equation anyway, the very next property I viewed I decided to grow thicker skin.I ended up evicting a family that had no security deposit on record (because what is a tenant if you have no leverage over them?)

If the trim isn't in bad shape, and the color is consistent, I would lean towards scrubbing it down with a light steel wool, and then applying a few coats of polyurethane.

If it real bad you can even roll on a coat of shellac or poly over the stains.

The granite counters were sealed with a water based sealant with 2-3 coats in the appropriate recommended manner per manufacturers instructions.

I have several rental houses and have always given them a new coat of paint (neutral color) during the initial make-ready.