I understand Property Inspectors can be very meticulous and every small item is not a red-flag, however, here are few things that stood out : Water was not on during the inspection.

One investor crafted his offer in such a way that he did not have that right.

I would take meticulous notes and documentation of ALL the issues...dates etc etc.... and not renew her lease.At the MINIMUM I would give her an ultimatum ....no more conflicts with the neighbors...no more late or partial payments....no issues with maintenance of the property....and make her M2MAnd the model tenants should just go about their business and ignore the lower tenant

Then start to craft a plan around your strengths and those you can leverage that will help you achieve your vision.

Meticulous cleanliness is a must.   

There are so many variables and crafting responses to them all takes time and experience.Best of luck in whatever you decide.

Craft your business to be in compliance and all will go extremely well from there.

The more time you buy, the more time you have of crafting a sale or reinstatement that works for your benefit.

My takeaway is that you can always be continuing to refine your craft.   

I also suggest having them help you craft an a straight option agreement as well.Make sure it's clear you have no intention to buy the property but you are selling contracts as a business, and doing this without a real estate license, you're now selling securities without a securities license as well.