Make sure that you have a clear case for all of those repairs: before and after pictures, move-in form, etc The more evidence you have against them, the easier it will be to proof if they decide that they don't agree with your deduction. 

I’m a newbie, I’ve always dreamt of buying multi-family units & now I’m finally at a place where I have proof of income and make decent money. upon further research, here in Florida it’s difficult to find any without major rehab work.

How do we get around this other than showing proof of personal funds for the 25%??

I board up or brick in fireplaces and tampering with this would be grounds for eviction.

I trust Robert's expertise going forward but at this point, the proof is in the pudding. 

Demand he shows proof of funds immediately to close on schedule and if he doesn’t Declare forfeiture of earnest money and right to purchase terminated.

s, proof of income, etc.

I am living proof of that.So if you see value in the convention then go for it.

Price: $1.2MOffer: $900kI had my agent call to see if the seller would accept this price because it's been on the market for a year.The seller's agent said the owner had rejected a $1M offer in the past, but it's been awhile so maybe and asked for a formal offer with proof of funds and pre-approval.Why?

You have the burden of proof that they knew about these issues and that the inspector was negligent.