Basically, they are abbreviated inspections that focus on the more expensive liabilities that investors are looking for instead of under-caulked windows and damage to drywall.

Look for homes with updated systems—new plumbing, HVAC, roofing, and windows are essential for long-term value and tenant satisfaction.

We have minimal resources as far as money goes, but we have a relatively long list of upgrades (window treatments, hardware, light fixtures, paint, etc).

Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window.

I often run into situations where I can't see nearby comps for a deal i'm working on that are within a 0-3 year window of being sold.

There are some turnkey providers that are vertically integrated that might be of interest to you if you want to invest passively.

Baseboards, couch cushions, above fridge, in cabinets, grout/caulk lines, rug maintenance, air filters, windows inside and out, dust the top corners of windows, corners of high places etc etc.  

Windows are part of the floor plans so always make sure you do your proper due diligence.

Quote from @Jim Reynante: After owning properties C/D neighborhoods with high crime statistics, I have experienced all of the things that go along with it: 1) High turnover rate; 2) Tenants that don't care for the property; 3) Little/No appreciation in home value; and 4) High Crime Rate (burglary, vandalism).I am pretty tired of fixing broken windows, fixing broken doors/locks, and painting over graffiti.

If you go in talking about unenforceable terms and lawsuits, then Option A goes out the window very quickly.