Estimates are way way over $100k in repairs and they claim in the appraisals that you can do a roof, paint, flooring, new ac, pool replacement plus pump and plumbing, 100' fence, new kitchen, remodel 2 baths and all new flooring as well as re plumb the house in a 2200sf house for.... $45k!

A couple of minor plumbing issues and a cosmetic rehab. 

It does not necessarily mean swinging a hammer, mowing lawn or installing plumbing.

150-200/month can easily be no income for two years if you need a new furnace or there is a plumbing issue.

This will typically cover all of the day to day repairs such as AC calls, plumbing calls, electrician, appliance repair/replacement, etc.  

I want to do the inspection because I am afraid there is something in the electrical, plumbing or roof that may cost me way more than my budget.  

For plumbing, I always use a plumbing company that has several people on staff. 

But the company said they would cover only for plumbing leak but not the water heater failure.

That plumbing bill or new appliance will generally cost the same, so higher R&M reserves, as a percentage of rent, are needed in lower quality/lower rent assets, too.

The right tenant will build out the space with AC and plumbing.