When I get the inspection I'll try to convince them to increase coverage or decrease premium based on how much updating has been done.

By increasing the down payment to increase your cash flow, you are decreasing your cash on cash.

I expect the top of the market to be really crowded in 1-2 years and see flat to decreasing rents and rental inventory skyrocket.

You'd probably think it was an eyesore, and It would decrease the value of your property.

The principal balance decreases over time because it is actually paid down.Under that same idea, to point to a flaw in your investment term plan/idea.

Junker properties stagnate (or decrease) in value.

I think unless you are in an incredibly hot market offering a home for lower then the competition this many hurdles will lead to longer vacancy.I am not opposed to hurdles to screen out the unmotivated ones but this is a large amount of hoops that will definitely lead to decreased demand.It is a trade off.Your life is easier & you have much more timeButYour rentals will be empty longer.

If you think you are decreasing your liability by being breed specific you are asking for trouble.  

If your building survives, but all the surrounding ones collapse, demand to rent in your area will decrease, and rents will drop (for a while, not forever).If you're considering a three story tuck-under (that is, a building with parking stalls on the first floor and then 2 stories of living space above) and plan to hold it a while, do not buy without a plan to retrofit, which will cost a pretty penny.Single story ranch style home from the 1960s? 

And yes, I figured, I would be doing the tenants a favor if there was even a slight decrease in their gas bill because again of the above-mentioned line of thinking.