Yes, the tenants tend to be a little better and they tend to do less intentional damage than low income tenants.

Would it be practical to take time dated pictures of the houses' condition so that if a scumbag did damage your property and say it unlivable or poke holes in the ceiling, that you could simply show as evidence that everything was fine when they moved in?

How much damage was done overall to the home?

You might achieve a mutually agreeable solution and avoid possible damage to the property.

New roof, furnace, drain line, eviction, major tenant damage, or any number of large, unpredictable expenses.

Sounds like the additional $3K is monetary damages in lieu of specific performance.

However, "tenant" (prior owner, or new occupant), has personal property damage.

To alleviate your fear, use a Purchase and Sales Agreement that states that your earnest money is full liquidated damages if you the buyer do not perform.

The investors who over leveraged their portfolio are the ones in deep trouble, can’t sell and are damaging their credit.

I can't speak to fungus but *every* property in California has termites, at least on the coast, so depending on part of the country and extent of damage, that's not necessarily a reason to run.