Thank you to ALL that wish me well, in this very scarey investment journey, it feels as though I have jumped into Shark infested waters, unfortunately. 

I want to start out owning this property very well and take care of the tenants, so I am going to cover costs for lawn care, $100/mo and pest control $40/mo. 

Not a single sign of a termite of any other pest in the framing.I do not know about your 1000 years lifetime estimate, but definitely a lot more than 100 years.Best wishes REdwood is naturally resistent to termites  same with certain cedars and cyprus  when one opens the walls on a CA redwood framed house the wood is generally perfect and 100 years old

In my state, a lender  like ask for a clear pest and dry rot report.

we just get pest control folks coming door to door. they know when its Ant season:)

With regards to pests in general, we'll pay for it in the first month, afterwards we charge it to the resident as it's almost always because they aren't being clean.

As long as it is a legit pest control company that is licensed and insured, give them access.

Your comment: "sounds like a poor home inspection"or it could have been a plumber, insulation or electrical contractor long after the inspector left the scene, Heck, it could have been a pest treatment guy or a 12 year old playing around under the house.

Focus on high-impact fixes like paint, pest control, and cleaning, and tackle small improvements monthly.

Clarify who’s responsible for pest control and under what conditions, as that can get messy if not addressed.