I'm very conservative and want conservative leverage percentages, long-term fixed rate loans, high skin in the game and sponsor that has experienced at least one full real estate cycle and lost little to no investor money.

-Has no crawlspace (common for older properties) so we couldn't see the foundation-Drywood termite/wood decaying fungi damage seen on all the windows/doors/parts of the beam on the exterior, parts of roof decking and rafters in the attic-Old leaks/moisture damage seen in the ceilings and attic-Parts of the roof has patch work-Roof doesn't have any permits on record (don't know how old it is)Seller's offer to me:-Fumigation treatment for drywood termites (tenting the house)-Replace and repair all damage wood throughout the house-Replace the entire roof with a new permit-Replace one window in every room (not all)-Pay for a structural engineer to inspect the foundation-Offer to get quotes for repairs and have a 15-20K budget to make all repairs, house is 500K.

I think you are on the right track however its going to be necessary for you to have some "skin in the game" sooner rather than later - while it can be appealing and seemingly possible to build a significant real estate portfolio with all of "OPM" the reality is you are probably going to need to have some equity in these properties - 20% or so down from your own funds to keep building. 

Needed to get my skin in the game and found a great opportunity with a wholesale deal and had a good visible gap between our buying price and the value of the home so I interested me to this deal because of the way that me and the team would be able to learn and handle these opportunities in the deal to maximize ROI and asset lifespan of performance.

Investing with none of your own money is also always an option, but understand, when you have no skin in the game, it typically means that you will be giving up more equity at the exit and/or splitting majority of the cashflow during the hold.

Consider vinyl trim in the future as it can withstand moisture.

Concrete is also porous and will have constant moisture issues until the source of the water is determined.Here are some things to consider before you start throwing the kitchen sink at the problem:Does this happen only after a storm event?  

We have charged $500 as a damage deposit since day one.I am of the belief that they need to have some skin in the game.

Your brain is going haywire and your body is simply trying to do all the changes and still fit into your skin.

They would require skin in the game (cash) and your analysis on a specific deal before funding 80-90% of the purchase price + construction costs.