Insurance companies are taking a close look at building materials, quality, and updates. 

My principal/interest, escrow, and insurance is 1570, and my HOA is 306 and it includes water.

How bad is the insurance, how high are the property taxes, is there an Hoa, etc etc. 

I'm thinking that repairing the plumbing leaks and getting the soil dried out could be a permanent solution.   

Well one thing that is interesting in regards to Earnest Money is that you take a place like Ohio, I'd imagine it's the same in Oregon but in Ohio the Division of Real Estate regulates the activities of real estate brokerages and their trust accounts but the Division of Insurance is who regulates title companies.

Quote from @Shakthi Kamal: If you don't know the answer, choose the umbrella insurance.

Selling to the wrong buyer can become more expensive than carrying the home for slightly longer.I will buy my bath/kitchen fixtures at a plumbing supply house and not a big box store.

Not only that most of ours we saved within 1 to 3 days of the sale so it was hair on fire getting the reinstatement back to the trustee.. total risk on our part.. give the seller some money we always did.. and then record the deed  WE did our own deeds in house.. buy without title insurance etc etc.  

What @Nathan Gesner said ^^^^ plus....do you have other construction skills like plumbing/electrical/tile/etc?

If you have checkbook control you’ll have a bank account with a bank that has FDIC insurance up to $250k per account.