I believe this was done to keep me in the dark and he would comfortably outbid me hoping I would take that inspection and 15 month old appraisal of 650K at face value.

@DanielKay Mordehai we used Michael Hughes of Inspect LV, highly recommend.

And is there any recourse when an inspection fails to identify problems?  

TN has an inspection period in its contract, I'd definitely get enough time in that period to get this investigated. 

Was disappointed about what the inspection missed. 

On Saturday I received the inspection report and few items made me think, WTF kind of TK job is this?

So first to start I’ve read the other forums and I already know changing an offer price is bad practice after the inspection normally. 

What should I look for in the home inspection report.

Always include contingent on inspection.

Some quick and obvious ones include: 1) not being able to find a good contractor2) even if I do, not being able to get him/her/them to walk the property during the diligence period to give me a thorough scope of work3) if I need to back out of the deal after seeing the inspection & SoW, that particular contractor not wanting to work with me again and then me having to start the contractor-finding process all over again4) not being in a good position to manage the contractor throughout the process, thereby leading to an over-time and over-budget (and potentially incomplete/subpar) rehab.I could go on but you get the picture.