From what I understand you need to budget capex to handle large ticket items that will fail eventually and unexpected expenditures (roof, furnace, AC).  

These line items are investor/company/financing specific and don't really speak to the operations of the property or help in determination of the current value.  

If you plan on doing some renovations & you know who the contractor will be, then more often than not they won't mind walking through the property & checking your electrical, & giving you an assessment on the plumbing, roof, siding, & structural items.

I obviously didnt include every single work item that would be included in these budgets but it gives you an idea of the 3 types of houses im talking about.  

The exceptions would be things that I can't fit in my car such as drywall, doors, etc.This allows me to buy things on sale and clearance instead of the contractor picking any retail priced item off the shelf.

These last 2 items will mean you will still have to have flood insurance, but because your finished floor is above BFE, your flood risk is much lower, so you will have to carry insurance, just not as much as it could be.

I highly recommend that you follow @Paul Timmins advice for the different items to check out, BP is a wealth of knowledge that will prepare you for everything.I wish you the best of luck and hope to see you at some of the meetups!

(You don't have to actually remove the money from the bank account)Send them a notice itemizing the amount deductedIn the notice state the remaining balance of their security depositState that they have 30-60 days to replenish the required security deposit balance or they will be in violation of their lease.  

Also if he tries to throw extra big ticket items at you in the middle of it, don't be afraid to simply say that you want to get a second opinion before saying yes. 

If they look at it that way, they will get a better idea.Though again, if you're buying historic homes, that are not in historic districts, and are okay if it is replaced with less than historic items, go functional value, that get's rid of coinsurance complete.