It raises a red flag in terms of where in the market cycle you are if the sellers think they can charge you a fee to conduct due diligence.  

I am young at 24 years old and do not have much experience in real estate and the cycles that the markets inevitably go through.Some things that I have noticed are that we see some very over-saturated markets such as Boston,  New York, San Diego, San Francisco, etc. where the prices are extremely high (compared to the average) and we see much smaller and less-saturated markets such as Nashville, Jacksonville, Charlotte, etc. where prices are low or at the average.Will there be a day when all of these other markets catch up and eventually become over-saturated?

I have seen Fred Foldvarys predictions on the market cycle, with growth being from 2012 to 2022.

@Jordan Moorhead Overvalued only matters at peak of market cycle, as valuation correlates to the subsequent price drop.

From the home inspection we've come to find out that the HVAC, water heater and probably the roof are all near their end of life cycle.

Would you sell it to realize gain now if you think RE is near the top of this cycle? 

I need a larger upside (renovation) before I commence my rental cycle to make a property a go. 

That would be a pretty big goof if they ran water supply lines for the laundry but neglected to put in any drain for them (this is an essential part of emptying the washer when its done with each wash cycle).

The market cycles downward and the project stalls.

This cycle continues until your property fulfills all of their requirements and regulations.