Either way, you will make periodic adjustments based on actual cost changes that have occurred over time, or else you can find yourself deficient on reserves (like many HOAs tend to be).EDIT: Adding this link for discussion of how to perform a "reserve study".http://www.biggerpockets.com/forums/52/topics/75626-maintenance-proportion-of-rent

The building inspector will let you know if the structure is sound and what deficiencies need to be corrected to meet current code requirements.

@Yoni Rozenstein I use a property management company here in Charlottesville, VA that requires the parents to co-sign for the rental so any monetary deficiency comes back on the parents.  

Despite these deficiencies they are listing the homes at top dollar value, in our case around $155/sf for a 2 level that has not been touched or updated in almost 20 years. 

Springer said that if there were a sale for a profit within the redemption time period, and the borrower owed a deficiency balance after the auction, then the profit had to be applied to the deficiency.

I purchased a house with the intention of renting it out, the city had a violation on the house (deemed structurally deficient) and said that nobody could occupy the house... the house is an old house (80 years) but apart from being old is in average condition, it was vacant while being foreclosed which gave the city the window to slap a violation on it.my question is - what can the city do specifically if you rent the property against their wishes - what legal action can they take?  

With a cash deal - you can close in NJ with a temporary CO (that lists all the deficiencies that will need to be remedied within a specific amount of time)  Best thing to do is talk to the town about their process.  

If the amount received is not enough to pay the amount due then the lender may seek a deficiency against the borrowers and guarantors.

If by agreeemnt or contract the buyer is paying, they are entitled to the report.As a seller you need to comply with those disclosures required by law, as to the issues specific to those requirements, nothing more.Additional information becomes a marketing issue, you can certainly use such a report to justify your price.Most such reports are made with a human element and may reflect personal assessments or opinions, the style of writing or in stating deficiencies, if it has a negative tone I might not hand it over.

I also would have never noticed these deficiencies in  REIFAX if it wasn't for me being trained on using Matrix and seeing firsthand how detailed the searches on the MLS can be.I know what I have just said is extremely simplistic and basic to the more experienced investors on this site.