Since the deal already was going through the primary offer process, we waived all contingencies including appraisal, financing, inspection, and any other extra tests like LBP and radon.

Upon further inspection, the zoning officer condemned the property due to the incorrect venting on the newly installed furnace(which was funded by fannie mae ) (3) months prior. 

I've chosen to invest in Texas because Census say it's the fastest growing state (https://www.census.gov/quickfacts/) and a lot of companies are moving there.My question is, if you were me, would you:1) fly to Texas, get to know the city, then visit again to inspect rehab work? 

Fast forward to 1/31 she moves all her stuff out and we conduct the move out inspection.

Funds spent on inspections, title searches, etc. are real and should be reimbursed if you walk. 

I’m running into and issue, during inspection we found some water damage to a portion of the subfloor and joist under the kitchen sink.

Inspections sound like such a good idea to everyone until they factor in the cost of said inspection.

Inspections came back (for a previous buyer) with zero repair notes.

.- If financing and you are depending on the income from the units to qualify, make sure to check the zoning of the property before putting in an offer (and spending money on a home inspection).

Your contract with the seller, if you have one, should have a clause where you have time to inspect the property and do your due diligence.