It is not his home to destroy or otherwise live filthy.

Second, beware of the two most common mistakes new landlords make and try to avoid making those mistakes:  Don't over improve your property and don't try to maximize your rents at the cost of vacancy and high turn over (either will destroy your profits so don't get too greedy).  

There is crayon everywhere, nothing has been swept or cleaned (appliances and commode are gross), small sections of wall paper has been pealed off, one door has light dog scratches on it, another door has been destroyed, the bathroom mirror is missing.

You want it rented quick, at a solid price, and you want a tenant that isn't going to go MIA 6 months into the lease and destroy your kitchen cabinets.

The report says: visible evidence of a wood destroying a termite insect infestation was noted as follows.

I understand that networking and relationships are very important in this business and do not wish to destroy my reputation before it even exists.Thank you in advance and I look forward to your replies,Nick

I would take pictures (do not destroy the area or expose to much).Call at least 2 other reputable inspectors in (that are licensed and "fully insured")to do an evaluation and provide you estimates for treatment if need be and a brief summary on any damage found.I had a similar problem on a property i was going to flip and one of the other inspectors i hired to check out the missed termite damage issues i found told me they had previously inspected the home and told the then homeowners all the issues but the homeowners (sellers to me) had a cheap company do a half arss job.

Such spending brings risk of being destroyed by tenants or never getting the value out at sale. 

Same if they fail to report a water leak under the sink and it destroys the vanity... 

Tenants will destroy doors and wood work.