For example, termite damage will likely require a completed termite treatment before the bank will close.

Try CoreLogic... http://www.corelogic.com/solutions/property-tax-services.aspx#home-ProductsServices

There are many ways new construction can be a better solution than a rehab or remodel and a smoother process.

If the house is still occupied, you could simply go knock on the door, talk to the current owner about their situation, and offer them a solution where you purchase the house before it officially forecloses, which would in turn save their credit from taking a foreclosure hit.

The solution here is to have the borrower sign and notarize an estoppel agreement that stipulates as many of the terms of the loan as possible.  

I do, and with the solution, Fannie Mae will gladly continue to give you many loans past the point where you have more than 10 financed properties.

I'm assuming it depends on the extent of the damage but I'm not sure how much termite treatment costs.  

Cost $300-500B) Do it myself, which I don't really want too but would be the cheapest solution.

That said, as someone mentioned in the other thread, there is also a psychological component, and it's sometimes correct to go with the suboptimal financial solution in order to appease the psyche...

For a 20-30 year strategy the buy side is less of a concern and turn key could be a reasonable solution.