I don't think building code and energy code will come in at $100K for a house.

There is always risk but I strongly believe if you have done your homework, your property is up to code and you are a diligent landlord you have very little chance of having problems. 

Have them sign paperwork that the systems are up to code. 

What if the house caught on fire at some point and was not repaired correctly or not to code?

If ownership of a community is running it only for maximum short term gain, homes will depreciate because people will be looking to leave.I would also concur with John on the hazards of pre HUD homes, and most of the time for anything build since the last major HUD Code revision.

This is determined by local market forces, so just ask your realtor to give you typical cap rates of a certain zip code.

Use one that has an easily changeable code.  

Hi @Rudy Manna:Generally stairways to an attic don't meet building codes for the attic to be livable space.

@Charles Wiegert is right - if the fence and shed were not permitted the city/county will most likely give an order to remove them - especially because that are not compliant with code.

You can set a minimum housing code as an addendum to the lease to 'set the tone' for your tenants.