Then when you get out, you're barred from any RE activity, you end up washing dishes at some dinner and can't even rent the house you once owned but a rat infested flat in a bad area where your place is robbed.

Looking for a way to fairly compensate tenants on situations like this, I guess it doesn't have to be termite infestation, it could be a major repair, or something that requires them to vacate.

Actually the project is even bigger in scope.Problem - roof and ceiling leaks in two units, drywood termite infestation in two units, very likely the two issues are related, roof leaks caused wood rot, wood rot might have attracted the termites etc...There is also evidence of subterranean termites.So the order of work:(1) Subterranean termite treatment - perimeter trench and concrete slab drilling with termidor application.(2) Roof demolition down to sheathing.(3) Repair rotted wood deck and wood joists.(4) New roofing membrane and flashing work.(5) New fascia and new drip edges.(6) Tenants leave for 3 days.(7) Drywood termite fumigation.(8) Tenants move back in.One pest control company will deal with the subterranean termite treatment.Another pest control company for the tenting and fumigation.One roofing company for all roof work and wood repair.One painting company for fascia painting.Plus reimbursement to tenants for loss of use (rent credit), lodging, food etc...I assume tenant reimbursement and termite treatments are expenses? 

He just discovered this last week that the outside walls are infested.

This would remove the existing infestation and the dirty old pipes which is allowing the infestation to survive.With new pipes in, the infestation is gone.

If there is live infestation I'd get a structural opinion from the inspector.

I do understand that it would be best to own a property in the least drug infested area as possible.For everyone - I am looking to learn as much as I can as I move forward to achieving my goals.

No option periods.I get the earnest money directly and it is non-refundable.I pick the title agent.If you want an inspection, do it before you bring me a contract.I will fix nothing in the house.I will not pick up the piles of trash in the front yard, or the piles of clothes in the kitchen, or kill the cockroaches infesting the house.

I have seen them but never paid attention to it until a call to cure the "bagworm infestation" outside the house on the exterior concrete block wall.I didn't even know a moth like thing live in these.

My 8 year old peered into the murky depths of a home made barrel full of algal infested water sitting where the rain flows off the roof and said she saw fish.