I've got a duplex built in 1888, and have a couple of cold rooms, upon inspecting the basement, there is no insulation under the floor of these rooms.

I think negotiations on knocking the price down on inspection items on value add will be huge especially if its a flip like you mentioned.

In our area, the housing authority does annual inspections to (mostly making sure the landlord is keeping up the units) review the tenant and the landlord. 

After all expenses paid the profits are closer to $2k at $8k/month revenue. 5+ bedroom homes in mid-sized cities is my strategy. 

Then there were some issues with the inspection report that ruined 3 contracts prior to me getting involved.

You just have to deal with lead base paint inspections and random rental inspections now though.

About 3 years ago she agreed to do a deal with me and we found the property and applied for the mortgage together and got to the inspection where a terrible problem was found with the foundation and that the walls of the building were significantly bowing.

. $700/month HOA fee may deter buyers, elongating your resale timeline, and could push your ARV closer to the lower end of your range.

Take your money elsewhere and GET AN INSPECTION!

Once the work is complete, inspections from the DOB and DOT will finalize the process.