So, what I'd suggest to you is more "emotionally" than a tactical approach.First, plan not to renew this tenant if you think that the tenant might be a handful in the nearest future such as requesting bogus repairs. 

You could also put in a temporary security system.

Take the emotion out of it..... this is a business..... they pay the rent or they get evicted...PERIOD.

Yes, when they offer to make improvements it indicates they're trying to appeal to your emotions and that they may be submitting a lot of maintenance requests once they move in.It's also a red flag when they offer to pay several months or the entire year up front.

I may possibly move in there for a year or so after it is fixed up but it maybe a temporary move.The house already has a lot of unpermitted additions and alterations (like cantilever decks and patios, unpermitted bathroom etc.) with shoddy workmanship and electrical hazards.

People get real weird and confrontational when they're selling their homes because they've got their life wrapped up in that house and its hard to separate all that emotion. 

Stick with your gut reaction and don't let emotion or outside forces impact your decision. 

That way the real estate investing is not emotional it’s just a numbers game.  

I am temporary housing for refinery contractors. 

After all year working towards and a month full of emotional roller coasters my first deal is done.