Because this guy is the cheapest SOB in the entire world, and if he has compromised my health for his profit, I feel that that is lawsuit worthyWhat are your opinions?

Compromise on something else other than that. 

In San Francisco & Oakland, breach of quiet enjoyment in bad faith if proven can triple damages.Good luck & maybe do an inspection every 6 months and call it Spring & Fall seasonal checkups and write those into the lease and get them to initial, sign off on it - and give the right written notice would be a compromise until you get more comfortable with your ability to vet and place good tenants.  

I studied law and the owner I worked for also had a membership to the CA Apartment Association, but the Nolo books are hands-down much better than the Apt Association's forms and explain the law in a way that's easy to understand.I learned that you can be really empathetic to tenants without compromising profits. 

@Rion RedingerIf someone has a massive portfolio and is making 6 or 7 figures in passive income per year, then helping out a single mom or whatever is no big deal but if someone only has a few properties, handing out gifts, credits and all this other stuff might eventually cause the tenants to start paying late and cause an eviction and cause a negative cash flow.There's a balance between being nice and compromising your business and future.

As pointed out you dropped the ball when you compromised your standards.

No amount of deposit will cover the damage repair costs.If it's perfect for a small family then do not compromise, find a small family.

With the understanding of the above, the tenant and landlord have come to a compromise, in which the tenant agrees to pay........whatever you agree to. 

I'd reach out to the buyer's lawyer and see what kind of compromise can be reached. 

Deals are thin as is, management is the flow of the deal after you secure the property don't compromise on either.