Was a good house when I made the offer, and was now a damaged house. 

You generally will need updated heating, central air, granite kitchen, updated bathrooms, and be on a decent block. 

Disclaimer: This is general legal advice & I am not your personal lawyer, please seek legal advice for your personal situation.In lease break situations, the landlord has a duty to mitigate their damages.

My biggest issues is that there is one furnace for upstairs apartment and in basement is forced air heating.

If not, we CANT GO AFTER THEM FOR DAMAGES!”

If you are experiencing significant economic damage due to the CV19 (cancellations, non-bookings), I suggest you complete the survey so they can take appropriate relief action.https://www.flgov.com/2020/03/12/governor-ron-desantis-activates-emergency-business-damage-assessment-survey-for-coronavirus-covid-19/The Business Damage Assessment Survey can be taken online at https://floridadisaster.biz/

And it looked like there had been some damage caused by a small fire plus the entire room was completely dark yellow and black due to many years of cigarette smoke plus multiple cigarette burns in the  carpet. 

I have about 5 more years on my 6 year contract in the Air Force.

Fire Damaged Property

and the neighbors house that also has extensive fire damage is about the same size.