I would encourage you to specifically calculate your cost of capital expenditures over time.

Need to consider a hold period, market rents, capital expenditures, oper expenses, market vacancy, reversion value, your desired irr, what type and how much finan. you plan to obtain, how it affects your level of risk, etc. a lot of questions to answer.And then how each of those variable might change throughout your ownership on an annual basis in order to come up with your expected CF stream.If you evaluate those items and the returns on invst are satisfactory you have a deal.

What if the inspection comes back that the whole house has cooties or that it's built on an old Indian burial ground or that it's haunted...?

I budgeted 10% for PM, 7% for vacancy (based on the PM saying his vacancy rate was 5%), and 15% for maintenance/capital expenditures.  

Suppose there's a market crash, rental rates fall, house prices fall, and then paying a monthly mortgage payment could prove challenging (not to mention other risks, like unforeseen capital expenditures).

It has a very old stock of houses...so increased repairs and capital expenditures.  

I have a property that I acquired years ago because the decedent's Son never paid the funeral or burial costs.

yea I'm a newbieCapital Expenditure (eg. roof replacement - other than normal maintenance).

Most other capital expenditures (bathrooms, furnaces, A/C, windows, doors, etc.) are really per unit and should be a wash under either scenario. 

With that said, is there a particular tool anyone uses with all of the necessary costs (taxes, capital expenditures. etc.) to see the potential ROE I could get from a given property?