Items we need them to inspect and provide quotes on include roofs, HVAC, pool area, landscaping, irrigation, look at building structure, look at the foundation, etc.Thanks in advance.

The township can be a little hard to deal with, as  they are always very strict with U&O inspections etc but overall its a good area for cashflow, and possibly appreciation (although I personally wouldn't hold your breath for massive appreciation there). 

@Rhett Tullis, the lender in their inspection identified some issues that need to be corrected within the first year - funds to complete those put into escrow. 

It's a gamble in some ways, as I don't know if I'd be able to build what I want due to zoning.prop #2- crappy neighborhood. 1/4 acre, BUT-has a single family house, small garage, plus warehouse space that's ~2500 sq ft. zoned C. cheap. house is also a total rehab. closer to "move in ready", but honestly, the crime in the neighborhood is to the level that I don't think I'd bring my kid there now.

Trim rotted with flaking and peeling paint .CN138106Remove and stop nuisance. (7-28-060)Front and rear yards , high weeds and overgrown shrubs .CN190019Arrange for inspection of premises. (13-12-100)Interior of Building - No response , unverified detectors , conditions and occupancy .

Have the home inspected and fill out an application on the occupants so you know who they are.

I chose Wilmington because the property taxes are significantly lower than Philly and it was closer to our family (we are house hacking this triplex so the location to family was important).

Also, a 5% management fee is low for a SFR, should be closer to 10%.

Then when my potential tenant turned in her voucher I was offered a much lower price, even before any inspection, so I told them to pound sand.

Even so with my calculations the cap rate should be closer to 1.75% without adjusting the rent.