The HOA for this neighborhood is quite strict and at times I feel they are too intrusive.  

Nowhere in the property disclosure, nor the inspection did it note water intrusion issues. 

My experience has been that the MORE INTRUSIVE the marketing, the LESS OUTSTANDING the product or service being sold.  

Now if it is something that is out of control & there are clear signs of intrusion through the house, then that may be a consideration for you to investigate in order to seal & prevent them from getting into the house.Ants & most other critters like safety from the elements as much as people do, they search for food & water too.

I agree with the overall sentiment here that the OP should take off his shoes if requested.But may I also suggest that this is a cultural thing, and that to someone who isn't used to such a request that the very request may sound inappropriate and like an intrusion- like being asked to take off your shirt.

That could be:- Improper window flashing or seals- Poor ventilation- Roof leaks- Plumbing leaks- Or even water coming up from under the house (if there’s a crawl space or slab issue)If you don’t pin it down, you’re kind of gambling with your rehab budget and your timeline.Get a Specialist Before You DecideAt this point, I’d bring in a moisture intrusion specialist or environmental inspector (not just a general inspector).

Carpet is super cheap if the basement NEVER experiences water intrusion from outside walls or seepage from the foundation. 

It's based around a tenant has a legal right to "peaceful possession and privacy" which now those waters of can a landlord do video recordings or not, is it an intrusion to privacy or not, get's a whole lot more murky. 

Fortunately, I never experienced any break-ins or intrusions, but my thinking was that if someone did attempt to enter, I’d be notified immediately and could call local authorities to respond.I'm not completely certain about squatter rights—since they can vary by state—but in my opinion, it would be difficult for someone to claim squatter’s rights if the property owner reported a burglary while the intruder was actively entering the home.Hope this helps!

Myself when buying off market If there is a PVC riser then the sewer line has been replaced at some point.. but if its not PVC then its clay and as @Marcus Auerbach mentioned your going to have root intrusions soil moves clay breaks etc etc.. just running water down the shower and flushing toilets is not going to identify the issues generally..