Check for big-ticket items like roof, HVAC, and plumbing.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Look up with an internet search on the lifespan of the item to find what percent is 'used up' and multiply that by the cost of a new one.

The most important items to consider for approval is that you have very clean credit and the lender will also analyze the exact location of the property to consider how long they will take to resell.

I guess without knowing your personal financial situation if I had to make a decision it would be thus: if I could get close to REAL cash flow break even (this means counting an expense reserve for items that will have to be replaced in the future) I’d rent it out.  

He has so many great insights and actionable items within his book.

This inspection breaks the findings into 3 categories 1) not normal wear and tear which is fixed and charged to tenant.  2) normal wear and tear that will be fixed and paid for by LL 3) items that are normal wear and tear but will not be addressed at this time.  

These inspector items just added to my over budget.Enough rant on inspectors Different project and rant on permit process.  

1 - closing costs both ends, holding costs, make sure to know costs of all POS items / reinspection's / what they could identify on future inspection, rental registration etc.2- As long as you are satisfied with the return I would3- If you can use hard money and use the cash for another deal at the same time or put it somewhere else to grow I'd do that.

Its but to you if you want them to fix it or to get credits and how much those credits will be to make it worth it.But its just that simple figure out what the issues are, if you are not willing to accept the condition or items as is then ask to remedy them or back out if you can't come to an agreement.