We are currently in negotiations about closing cost he’s offered to pay 5000 should I fight for more or should I just walk away from the deal I believe this home will be worth $1 million in the future.

They're fighting revitalization.

The Psychology of Money by Morgan Housel
This book clearly describes our drastic use of and thoughts on money.
Take this into consideration when you are investing, when you are looking to partner or when speaking to...

This isn't like the luxury listing shows where there's 2 brokers fighting in a restaurant.

When something goes wrong, you can find the best contractor for the job, who can make the repairs right away, and now your tenants are happy, and you have minimized the time you would have spent speaking to your tenants about the delay or fighting a warranty company.

If they met all your other criteria I would use petscreening.com to verify and make sure the dogs are ok with your insurance, if not that's something I would fight. 

The rise of Airb&b and VRBO have put significant pressure for tourist dollars on the resorts and they have the money and influence to fight it.

Not worth the fight.

(I'm not either, for level setting)... and to that end, you are about to engage in a legal fight - presuming you want to be compensated - be it for violating your right to privacy, the damage the police did, etc. 

It is likely a moot point because if she isn't hurt badly, the issue will likely come down to a small settlement because the cost of fighting it in court would be more than a small settlement which is why insurance companies often settle these kinds of cases.