It's best if the seller (or seller's agent) is not standing around listening to prevent the tenant from speaking freely.

Failing the framing inspection could be too late to prevent damage if you chop through something important. 

  - The upkeep budget seems high at 25% (PM, Prevent, Cap Ex)- Insurance and Taxes are based on a $100,000 home but rent is in line with a $60,000 - $70,000 home.

I will be doing this, however I'm looking for additional suggestions and strategies of how to better handle and prevent immediate tenant issues with this current situation.

If you invest in warzone, you will need special people, because flying bullets prevent most companies from doing their job. 

I wasn’t sure if this was what they legally had to do in order to cover themselves, prevent fraud or whatever.

Prevents tenants from calling to complain about the neighbors on a SAturday night at 11pm.

We find asbestos in the Chicago suburbs all the time as a pipe insulation, and the common recommendation is to leave it alone and just wrap it up with plastic wrap or something along those lines to prevent it from crumbling. 

@Justin PingstonSplit limits are usually in place to prevent the issue of spot zoning or over burdening your parcels where they won't meet setbacks or where the building footprint to lot size ratios are too high.

There are products available that will help prevent the mold from returning but it does take some regular attention.It honestly sounds like an excuse to leave.