No job means no safety net so when the flip hits the skids you will not recover.

Everyone wants a lipstick flip which is non existent nowadays unless you're willing to take razor thin margins or make some kind of appreciation play. 

You have a good inspector.The Al wiring needs to be replaced & I've seen a lot of it in Florida when we were buying down there & the arcing is a fire safety issue, (wish I still had the old pics I took).The 2 prong ungrounded outlets will all need to be replaced & rewired back to the respective panel(s) for each unit.

But is it reasonable to be worried that big companies like this will squeeze us out with razor thin margins?

Your inspector will look for structural integrity issues, life safety issues/fire hazards and inspect your MEP Systems to make sure Electrical panel, wiring, piping, hot water heater & HVAC systems are acceptable/good working condition.Roof/Crawlspace/Attic InspectionsIf you are afraid of heights and don't want to get on the roof, crawl around in a dirty creepy crawl space or climb around in a haunted attic, an inspector can inspect these areas.  

I do only have this one house, and I keep very detailed records, but I realize there are suddenly a bunch of tax rules that may affect me and I know little about.Should I have a home inspection done to determine any code issues or safety issues to correct prior to converting the property to a rental?

Go with a location that you're comfortable with... distance from you, safety and cash flow.

Safety first.

Give yourself a wider operating margin and a safety net.

Valuables can be stored in a safe, storage room or safety deposit box.