To combat this, I prefer to look at the big ticket items(roof, water heater, HVAC etc) and if they're all in good shape then I know I can afford to be aggressive.

In your experience, is there a way to combat that during the offer making process?

So I will not be able to, but I know people have rental houses in this area, so I have to attempt to figure out how they are combating the insurance.  

Franchisors are not raising menu prices to combat the increased labor.

Ideally I need to get a separate system installed downstairs for the heat to be a consistent temp (I had an appt for a quote this morning and am waiting to hear back on this) however I know its not going to be cheap so Im debating whether to go through with all these extra costs to turn what was meant to be a single family home into two units or just rent the whole house or sell.To combat the issues above I could just rent the entire house out to someone who would use the downstairs as a mother in law type unit for themselves...that would probably make the most sense - I could realistically get 2200-2500 clear for rent and have them do their own utilities.

Yes, there will be buyers who walk - but the best way to combat that is to show proof of all inspections passed.

I'm interested in hearing how other landlords combat this problem!

However with homeowners its usually been ( especially in a mortgage sherrif sale state) a factor of years that the people have lived for FREE.. not just a month of skipped rent.. and those folks still can be combative as all get out.

There is a lawsuit going on currently to combat that so that would be something to research for sure.

@Tim Gordon I am in the military stationed in Kuwait, I make about $160k a year tax-free since the higher powers consider this a combat zone.