No telling what an inspector might dig up, and there's a water trail down the siding so checking for termites is a priority. 

This may work now and then but long term it is a lot of tail chasing and not a fruitful way to find deals.

The way I read it being in a normal tax bracket of only 10% if it was sold as a short term capital gain it would be taxed at 10%, but if sold as a long term it would be 0%.

Longer term, it makes more difference.

.* I'm not saying that this is the agent for you, but if you want to thrive in the real estate game long term it would be hugely beneficial to get an agent on your "board of advisors," and one that will have your best interest in mind.

They are recommending the entire structure inside and out be treated for termites and they’re guaranteeing for 2 years.

If you want to buy and hold for long term, it is the best tool for the job.

Also, can one ask the bank to pay for building inspections such as a termite inspections?

I would say on premium triple net properties it is doubtful.Too many other players ready to put skin in the game.They don't have to deal with tenants,toilets,and termites and get a 6 to 8 percent annual return.You might be able to structure something with a non-corporate tenant but that carries a bunch of more risk.You can get into these properties with less skin as lenders that do credit tenant loans will go 90% LTV.So you could in theory structure these no money down but again there are big companies gobbling up triple net with hoards of cash.If you are assuming a loan the lenders feel much more comfortable with a big corp with tons of backing,cash,and a track record for performing.The other benefit is that with the big company as the buyer the lender will let the personal guarantee go on the loan assumption.If you are just Joe Blow wanting to assume it they might let you with a personal guarantee still attached to the seller.This has just been my experience and there are always exceptions to the rule.

The intent of prop 13 was that people's property tax did not go up at astronomical rates when property appreciates (which long term it always has in So Cal and San Fran area).