The ironic thing is if the OP bought this place at the contract price, it immediately becomes a comp and raises the value of the subject property itself. 

Ironically, doing value-adds, I increase the rents on my properties and that increased the cashflow and the value - meaning, I force the appreciation.

Seems that there is still some details I need to iron out before I start.

The purchase price is $626k, with one unit delivered vacant, unit two currently paying $800 a month, and unit three paying $700 a month.My question pertains to the inspection report I have received, which states that the roof has around 5 years left, and I need to replace the drain iron plumbing to the street, which is estimated to be a $10k job.

In the DC area, Id say no, which is kind of ironic since Costar is based here in DC.

A well water test is around $900 with the new state parameters and typically not very expensive to fix (1-2k) if there’s an issue with the actual water but a well inspection is a smart move because if the well is original and cast iron you may need to drill a new well and depending how deep you need to go I’ve seen them go up to $6k.

Ironic, isn't it? 

For maintenance and with old Baltimore places do you understand the cost of old infrastructure like old flat roofs, cast iron drain, etc. 

So, likely nothing changed in the program.The ironic issue here is that for a SFR it is pretty difficult for a 15% DSCR loan to work because you are leveraging so much AND the rate is higher due to the small down payment, so the PITI is often higher then the market rent.

That yellow smart board under paint and purple sheet rock for ceiling (so it never supports internal mold sporesI have even used older cast iron tubs people have thrown away cause they were stained from water etc.