Someone can probably give you a more detailed answered but my simple mind says if looks like a good deal lock up the contract with an inspection clause and then get your title company to look into the covenant and give you all the details and implications. 

Condition can only be done by inspection, which involves a septic pro pumping out the tank (in order to look).  

Some cities in Michigan require a rental inspection/certificate.

Rent was cheaper, we required photos and inspections at various intervals and we also listed out in the lease agreement a work schedule. 

Grooming also plays a role as well as keeping up with the property and performing inspections.

In the pre-move out inspection, I found the bottom part of the master bathroom door is badly rotten (water damage) and the paint there got bubbly.

I have 5 students who's lease expired and they all moved out, upon inspection inside my rental home, I found damages, took photos of it. hired some contractors from thumbtack app and facebook locally to fix some major wall scuffing, repainting  and many more issues. 

However, i'm not familiar with the appraisal and inspection process.

Do not do the jerk move that a lot of landlords do and try to tell them it is an "insurance inspection" or some other BS because a someone will slip and then you have anxious tenants on your hand. 

Inspect much more regularly, monthly for first 4 months then quarterly at minimum.