Thank you Matt! I appreciate those insights. Your observations are very good. The inspection went better than I was expecting, but my expectations were pretty low. I haven't gotten the full report back yet, but I'll briefly clarify what I can based on the walk through. I can post the full report when it comes in. The bones are good but there is just a ton of stuff to do and redo. This house has been purchased at least twice with rehab loans, and there are some goofy things that have been done or half done.
A/C unit - turns on but the fan doesn't turn. Might need a new capacitor or motor. That and the furnace are both lennox and appear to be installed in 2006.
Siding - compressed board in good condition. Needs to be caulked and repainted.
Popcorn ceiling - I'd send that, along with the glue holding the tiles in the entryway and kitchen, out to be tested.
Egress window - correct height from the floor and plenty tall and wide. The wells are not quite 3 feet back from the window and don't have ladders. Inspector said they might still pass since they are so shallow, not even 2 feet deep.
Upstairs bedroom - has a closet in the left corner out of the picture. That apparently was once the door to the basement.
Most of the outlets around the house are two pronged so I hope you are correct about them being grounded. Changing to three pronged outlets is easy as long the ground has been run. I didn't happen to look for one in the bathroom, good call on that though.
No idea about aluminum wiring upstairs, but it might be in the report. The basement has new wiring. It appears to have been run by a professional because there were notes on the wires about where they were going to and things like that. The inspector said it wasn't something amateurs typically do. However things are not finished and would definitely no meet code, like exposed electrical boxes.
The gutters around roof are in decent shape, could be cleaned and resealed. They are rusting though, so they're not aluminum and are probably original. The spout might have completely rusted away.
Foundation is in good condition. No leaks or signs of moisture in the basement, we did have torrential downpours earlier in the week. There is a lot of settling going on below the walkway. The steps are on the foundation and haven't shifted, but yeah there is a giant crack between the walkway and the foundation. Could be sealed with foam, mortar, and caulk. It will be a skating rink in the winter though.
The attic fan does work. I have never seen one before. It probably won't stay though.
All the visible pluming is copper, except for the waist pipe coming from the bathroom is galvanized. The inspector indicated like you said, it shouldn't be a big job to replace with plastic or whatever.
That was a big help! Thanks again.