I tell prospects I am not set up for section 8 and have no intention of adding another level of government intrusion into my business.

If you say "inspection" it sounds more intrusive to the tenant than "seasonal maintenance".

Moisture and water intrusion in basements is a headache. 

Maybe the water is getting in from behind the front bricks and in front of the inside bricks.If the walls are a sideways brick thick, they may be a double brick wall back to back with tie bricks holding them together (old fashioned way of building) vs modern veneer.Sometimes during construction the first floor is made with even wider walls to accommodate future upper stories.The layers of bricks will not have mortar between them (most likely, but who knows).So if you have water intrusion up higher, it may come down there and leak out behind the stucco and when it freezes bingo stucco pops off.The intrusion could follow an old window casing down and leak in a hidden spot under the sill and flow down, or on an angle.If you are using a good stucco contractor and he is baffled, this might be it....or it might not be it....Maybe affixing metal lath to the area might help--but if it is a water issue,,,that water will have to go somewhere, and if its bundled between the bricks when it freezes...the bricks might pop.Maybe shield the areas really well with plastic duck taped up there, and if the brick is wet or the taped cover holds water when you open it after a storm...you may have figured it out.

How would underwrite a row of buildings that are near the end of their life expectancy but are still operable (they have minor water intrusion issues, I've heard of claims of rodents going through wooden floor, etc.)?

But it's just a wast of time if you haven't identified the source of the water intrusion.

They also arent subject to as much NIMBY intrusion from the neighborhood watch groups.

It had structual damage caused by termites, also had rat nests and associated damage, and plenty of water intrusion.  

I will have to ask about the root intrusion, they did not mention it when they did the camera.So what are you doing for/with your tenants? 

@Jay Hinrichs, great topic.We don't have any rent control here in SW Missouri, but we've started to see a little more Govt intrusion with rental property registration and licensing requirements.