And do i need to get a special termite inspection by a pest control company or will an ordinary home inspection suffice? 

You might consider Niche or Specialized Housing like student housing.

Is it standard practice to just continually put away that 10% in a special account that's for "repair funds" for each property? 

What special permits and local committees will I have to deal with??

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing.

You might consider Niche or Specialized Housing like student housing.

Do we have a special paperwork4.

They can sit down with you and explain the legal benefits between different types of organizational structures; LLCs, Corporations, Professional Liability Corporations, special Statutory Corporations available in your state, limited liability partnerships, general partnerships, etc.There is no one size fits all, and an LLC may not even be in your best interest.

I have thought about specializing in this niche before.

Have you had to pay a special assessment fee for something that was not planned for?