-It is 40 yrs old-Aluminum wiring-No central air/no heat-Evidence of water damage around most windows, and kitchen flooring-I don't remember there being a hot water heater-Last owners replaced some windows and did a shoddy job-No car port/no storage shed-The cabinets in the kitchen appear to be home made with plywood and white paint-Soft wallsBUT mostly.. it's a 2/1 and they just don't move like the 3 bedrooms.As far as why did I settle for only 4k?

During the inspection, I found water damage (not bad) on the wall around the window AC.

Hence, I want to do the repair myself to minimize any damage cost.

Tell them they get the cash only when they are out of the house with no major damage, and then meet them, inspect the house, and pay them.

If there were enough pests to merit a treatment and re-treat, was there really 0 damage?

If any such damage is a result of the act or omission of Tenant, Tenant shall be responsible for all costs to repair such damage.

In my experience, I have not had pet damage that goes beyond the initial security deposit (although I know others that have) so I prefer the extra income. 

If we had made the same mistakes on a larger property, it could have been financial damaging and lost money.

Unless you have the exact right person, you are taking too much risk and the damage can be too huge..... just pay them and carry on as usual....

There are definitely things you need to keep in mind like that most of the tenants do not have income coming in to pay for tenant caused damages.