He said the owners obviously tried to hide the fact that there were termites (more on that below).  

It makes me think that they're hiding something - and maybe something big.

If you meet people that are operating illegally and KNOW it, they generally hide in the shadows, avoid giving out much info on themselves, and are kind of like cockroaches that scurry from the light.

If we can hide/dismiss threads on the front feed page, like our inbox, then that would be very helpful.

Normally I do not like dealing with FSBO because the owner is either hiding disclosures or is being unrealistic about price.

Is there risk, sure but I prefer to take educated risks rather than hide under my bed. 

I'm concerned that if I tell him not to be smoking then he is just going to try and hide it by smoking inside and really causing damage to the unit. 

That is called OSB ( oriented strand board) and is mostly used for sheathing on the outside of the house under the siding. the problem with putting Spackle over it to try and hide it is that the moisture from the Spackle may get into the board and start to de-laminate it. if it is only 3'-4' high, you can dress it up with some sheets of 1/4" bead board, if it's the total wall you can cover it with 1/4" drywall. look at it this way, there is no way a tenant will put a hole through those walls after you cover it, i would consider having that a plus.

This is a strategy to hide what you have done, not a legal method of circumventing the clause.

So technically I can hide some of the income under the carpet, at least I hope so.