2. main bathroom: the toilet wasn't flushing and will most likely need to be replaced. the tiles on the floor and along the wall were also showing signs of coming off and will need to be replaced. 3. flat roofing material has aged and will most likely need to be replaced soon. 4. water heater is working but has met its life expectancy; will need to be replaced soon.5. water supply piping has started rusting in certain areas and will soon need to be replaced6. radiator in the main bathroom on 2nd floor not functioning7. oil/water boiler has met life expectancy and will need to be replaced soon8. chimney shows major deterioration/damage from exterior and needs further inspection9. wood framing in the rear of basement shows evidence of rot. the kitchen is directly above this area of the basement. extent of damage could not be determined due to insulations and will need further inspection10. pavement in the back of the property have cracks that are leading rain water towards the house. we were hoping to renovate this so that the water is diverted away from the house.

Other than that typical old house stuff to look out for: rotted floor joist, non-exsisting footings, crumbling stone foundations, settling, old plumbing, knob and tube wires, poor insulation. 

Insulation except for foamWindows/doors aren’t bad either, make sure you do it right or they leak.

I just wanted to make sure you know there was another acceptable approach (with lower valued properties if that is what you are doing) in lieu of using LLC's.If you are flipping however, i personally would recommend a LLC to insulate you and your other assets from the liability, which after a several homes really adds up. 

We intentionally invest in secondary and tertiary markets in areas with strong enough supply and demand numbers in an attempt to add us a bit of extra "insulation".

Thank you @Michael King I am a bit insulated from most news and was starting to wonder if it was all rumor.

People who own multiple rental properties sometimes form a series of LLCs to insulate each piece of property from liability claims involving other properties."

You may also be able to increase insulation (but ask HUD).

This area is insulated from the macro, thus banking on appreciation and shortage of housing.   

So, if the sheetrock is up, and you plan to pull permits now there's a good chance you will have to tear it all off so the inspector can properly inspect the framing and insulation.