That saves time having a retail buyer come through with an inspector and try to negotiate repairs.

The area itself is pretty good and all my deals are pending home inspection from my inspector.

It is the same tool section 8 inspectors use.

Hire a good home inspector, make sure the house has clear title, and verify rental rates yourself. 

Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

The inspector identified the damage and so I was able to get a better price for the property.

The buyers had the property inspected and the inspector came back and said the pipes in the home are made from polyeurothain which is a banned material and the whole house needs to be replaced with a different material.

It doesn't seem to be an insurance company that would provide full coverage even with added premium.The seller was able to carry full coverage now, because his inspector was incompetent and didn't see the polybutylene pipes in 2008 when he bought it.To me it seems my options are to either get the seller to repipe before the sale (zero chance) or I pay cash for the property? 

Some of these new construction changes will include: requirements for beefier 2x6 walls that are thicker to provide more insulation depth, installing more attic insulation, installing tighter and more efficient HVAC systems and water heating equipment that may need to be certified by third-party Inspectors for compliance.

I would approach the Bldg Inspectors & see if a complete fire sprinkler system would suffice & negate the need for an external fire escape.