He wants me to pay for the replacement of (hopefully only) the damaged wood panels. 

The shores, Grosse Pointe Woods/Farms etc.. 

Same question for back yard zero-scaping - wood chips are a little bare....is it worth it to bring in a new load and spread them?

I did charge a rental premium ($650 vs. $550), which made renting profitable from a P&L perspective, but I was not valuing my time as an expense into the P&L.  

@Moni Av If there is wood rot and termite damage in that many areas, then you have to ask yourself isn't it likely there is even more behind siding and such where the inspector could not see.  

I can't imagine any other reasons someone would sell that low unless they are clueless, desperate or felt like giving up all worldly possessions and moving into the woods.

Be careful that a senior lien isn't sitting out there in the woods waiting to come out after a rookie bidder wins it at sheriff's sale.

I have advertised it in many different forms as well as making sure it gets premium exposure.

I made an offer to the seller six weeks ago, showing him pictures of kicked and punched in walls, doors torn off, and a foundation corner being propped up with wood blocks.

I am still looking for my first rental and one thing keeps bothering me.I'd like to rent to A-class tenants who would pay a premium for a better property (granite counter tops, hardwood floors, etc.).