Is this something to avoid at all costs, tenants will likely destroy it and make it tough to possess... or is there a way to solve this and get a great deal? 

.- He is going full time in RE so wont have a W2.

Truth is, Covid-19 wont likely be "over" until next summer given how long it will take to mass distribute a vaccine, and looking back at Spanish flu.

During our home inspection,  a visible evidence of  wood-destroying insects was observed, subterranean termite tube.

Your issue wont be finding financing; it will be finding the deal. 

Overall, most service members are great tenants that will do the right thing and not destroy your place or leave unexpectedly.

Hey BP community, I'm at a stage in my learning process where I am ready to pull the trigger on my first investment property, pending current economic uncertainties but that is a post I've seen covered plenty already so we wont get into that! 

I don’t wanna destroy that rapport by offending him about his price.

Unless your house that have enough free cash flow pays for it, it wont be feasible.

Sorry to read newspaper reports of a local apartment fire, and all the tenants, 20 of them, became homeless, all their property destroyed and no one had renter's insurance according to the news report.Fortunately, that was the only tenant I had such problems with.