The main issue with rental basement is water if it has water issue usually it is a simple fix .Clean gutters ,discharge gutter  water away 10" away from foundation, make sure you foundation soil is slopped away from it .If you need to buy soil get a clay mix .Cut back any tree too close to the foundation look at the drip line that's how far the limbs are out from the tree .If all that is done still has water buy a sump pump  carry the water to day light away from foundation 10" to 15" .

And by the looks of it, some very mature, pretty trees and I'm sure that neighborhood will look great during the holidays!

You are looking for issues with the foundation and any other exterior anomalies like giant trees that could be in the sewer line or pressing against the foundation of the house, evidence of buried tanks, where the septic and leach field is, etc.There are plenty more things to focus on as well, but these four are often neglected by newer out-of-state investors relying on an agent or friend as their boots.What else did I miss?

You just aren't my cup of tea.

People like water, trees and boulders.  

This is called missing the forest for the trees investing wise. 

Hi thereNeeding some guidance if I should run.I am in due diligence on my 2nd deal and the sewer inspection found 3 areas in the sewer line with very tiny roots. 2 were little nubs and the 3rd was  like a new growth on a tree. 

Just to trim a massive tree on one of my rentals is $4,750.

Second look at the expenses and see if there were any (or not) major updates to the property such as roofs, pipes, electrical panels, tree trimming, sewer laterals, or paving. 

Building your core-4 will also be fundamental to investing out-of-state, I'd recommend reading this article by David Greene: https://www.biggerpockets.com/blog/core-four-real-estate-tea...The Midwest markets present some good opportunities for investors with cheaper price points, lower taxes and a lot of them being landlord-friendly as well.