They agreeing to findings.2. complete repairs found by inspection and deduct from deposit3. clean carpet if they don't provide a receipt from a local, professional cleaner which is the condition they received it in. deduct from deposit if they didn't.4. if a pet was allowed, they must turn in a receipt showing it was treated for fleas. if If they dont it comes out of the deposit. if any damage from pet they're given an estimate of repair and sign an agreement that they will pay any excess not covered by deposit.5. touch up painting as needed, filters changed, fire alarm batteries updated.6. get keys from tenant and change locks. old locks go into inventory to be used in other properties.7. return their deposit with a letter documenting what expenses were paid out of it and a notice that they are welcome to return if they were a good tenant. they can use the statement for their future landlord as well. if they were not a good tenant, they go on a do not rent list for future reference with a copy of mive.iut inspection signed by them indicating damages and/or non-compliance behavior.

I'm surprised at the condition they left the home.What do you think?

Given your situation and current market conditions, you should sell and take the gains and park it until you get things in order. 

The current house on the property in livable condition comped in zillow (not the most reliable source but close) for $90,000.

I dont give a reason, and since I maintain my properties in tip top condition there is no special thing I do. 

What condition has the tenant been keeping it in currently?

I'd also guess that this value will be tied to actual condition of the property vs saving the bank an adminstrative burden/quick closing...And if the condition is bad enough to knock 20k off, it'd probably impact the appraisal your retial buyer will likely need...

Makes more sense to me, give yourself multiple exit strategies and greater access to deals regardless of market conditions.

However, Landlord makes no guarantees to the condition or function of the machines.

You might consider paying cash for keys with the requirement that they leave the property undamaged and in broom clean condition.