That and there was cat urine damage to the carpet and trim in the same room.Because of all this, we wrote him an email saying we'd be getting quotes from contractors to fix these items and we'd let him know how much of his deposit would come back (if any of it) after we got the quotes. 

He is unable to afford market rent and has a big dog and the place smells like dog urine.

The place reeks of cat urine.

Original owner who had cats; reeks of cat urine.

This lowers the principal balance and this typically lowers the preferred return hurtle calculation.

Teal blue paint on exterior stucco, roaches crawling around the kitchen in broad daylight, pet (and probably human) urine and other foul odors in the home, etc.

It's obviously not waterproof because it is fuzzy looking at the joints in places from urine.

Tenant B allowing his dogs to urinate all over the house continuously for months on end. 

That would be one major hurtle. 

Remember that little dogs are just as likely to urinate indoors and cats create an odor that is extremely difficult to remove.5.