During the inspection it was discovered that there is a tiny bit of asbestos in that wall (not sure if “tiny” makes a difference when talking about asbestos), so it sounds like that work will need to get permitted as well and in order to do that I imagine they will require me to have it professionally removed?

Trusts create this anonymity by removing your name from public record.

You should remove all exterior spigots from the house.

It's a pier and beam foundation, and they've left the vents covered around the base of the home, so I know I should air it out down there by removing those as well. 

A few nuances here related to the numbers:List Price: $449kFirst Offer Received Buyer X: $465k w/ $95k down (with appraisal continency) Final Accepted Offer from Buyer X: $480k w/ $48k down (appraisal contingency removed)Bad Appraisal: $440k (should have been appealed with ROV due to errors but buyer declined; average age of comps was 11.5 months and no inflation was added to adjust values, also appraiser used incorrectly small square footage)Buyer's Original 90LTV Loan: $432k ($480k w/ $48k down)Buyer's "Final" Loan Application: ????

I would recommend against using a threaded fitting, because it would mean that you could have to successfully remove whatever fitting was previously threaded ... it will be faster and less hassle (in my opinion) to cut the pipe where you want to and de-burr it, and add the compression fitting.In all honesty, if you plan it out correctly, it won't take much effort to simply replace all the galvanized pipe in the house, starting right at the meter.  

It is extremely difficult to get out smoke smell and sometimes even drywall and insulation needs to be removed to make it go away.

Remove the RWC numbers from above, that is a Washington state specific law.We do walkthroughs annually.  

@Russell J Howard I'm originally from the thumb in MI and have been living in Los Angeles the last few years so may be a bit removed from current prices in Livingston County these days, but if you have ~$15,000 to put towards a down payment, that could get you to around the $400K-$425K price point with a 3.5% down FHA loan (before factoring your closing costs, reserves, etc.).

Revising the lease agreement to remove tenant's "right" to the garage and to sole user-ship of the property, 3.