Jim - I like your renovation principles... you don't have to get rich on every rehab, but if you deliver a well-designed, solid finished product every time, you'll show a nice profit with each one, and develop a rep.I understand those landscaping challenges in a cold climate, but I was looking more at the entry, garage door, and hardscape.

It does have cold nights.  

Let me keep pressing and demanding that going forward

But good idea, I'll press my lender for a pre approval of sorts.

A laundry list of items (especially ones that were already visible during the previous home tour) is a sign of someone with cold feet or getting bad advice from their agent/family/friends.If you are in a seller's market you tell them you aren't going to fix anything outside of safety or hazard issues.

 - Is it bad form to press her on why it fell out?

If they could pick up a fork and press on one of the tines with their thumb and get it to bend - it was not suitable for nightly rentals.This is the latest condo we renovated.

If there's several-many properties in your  area having large DOMs, then that indicates a cold market - - should be receptive to discounted offers.  

Too many debts.Even if their gross income is sufficient, they may have so many other debts that they would be hard pressed to make all the payments.

The guy's argument is standing on wobbly legal legs, but that doesn't mean it won't cost you to win if he does press legal action.