However, now that we have an accepted offer, we are concerned about a few things: Before we put in an offer in on the house, we told the seller's agent to let the tenants know that we would be raising the rent from $1250 to 1350, which is market value for the area.

I would say that your insurance cost estimate is a little high based on single family rentals because you are insuring only the house and not the stuff inside the house I usually estimate insurance at $500-$600 per year unless the property is in a high fire danger area.

Beyond the easement concern, that's something I will have to figure out when I see it in person - the area where the two property lines meet and how that may appear to a future buyer.

If you feel it is a legit concerns I would consult with local police or other security expert to see what where the property is most vulnerable the best use of of your money is to address it.

Increased water usage is the least of your concerns.

I'm not concerned about asbestos or lead paint.

@Carl Fischer that is my main argument, because we are just starting out we don't have anything to lose, but she is concerned that since we are going to be living there if something goes wrong we could get sued if we can't fix it in time.

As others said main concerns are knob and tube, windows and plumbing.

(He lives in same building as landlord)My concern is I'm reading a lot of scams on how Chicago tenants try to work the system and the landlord is stuck in a battle for months.

@John Merritt You're pretty much keying in on some of my primary concerns.