Anything that appears to be a health or safety hazard on a potential property needs to be repaired BEFORE  it qualifies for financing.2, sellers usually are willing to make/pay for minor repairs such as chipped/peeling paint, cracked windows, exposed wood or things of that nature.

You will have to get your own policy evaluation done by an industry professional. 

Once done, I am going to switch to a landlord's insurance policy.

I have written policies because of severe flood risk that are north of $3000 annually.  

I believe this is could be partially due to the fact that he has 30 month leases with mostly older tenants (His policy has always been that he does not rent to anyone under the age of 50).

How does your policy read in regard to such matters?

On March 8, 2017 my property is now restored and is back in service.The HOA's master insurance policy dealt with the repair to the building structure.  

As an aside, I did have an electrician go through the home when we bought to assess any safety issues- we identified about $1000 worth of repairs we promptly took care of. 

HOA's have been changing their rental term policies with more restrictive language .

Some folks do an LLC per property, some an LLC per million (or max on their insurance policies), some just get insurance policies and lawyer up.