Risks, additional fees, or unexpected things, etc.What types of terms are more investor friendly?

Lets say I am sure I want it and something unexpected comes up during the due diligence process. 

There is always a ramp up period with unexpected expenses and time required to build up reserves.

The second would be to discount price based on expected cost; you control / oversee process but have risk of unexpected costs.Which way (if there is one) is common / recommended?

There is a lot of downside that can derail you our of your control- The experience and competency or the board and the management company- HOA fee increases YOY, unexpected assessments- Can have limitations on STR, LTR, ect.- The HOA fee which acts as a partial reserve for future CapEx is not something you take back with you when sell if unspent.- HOA finances: how well funded & managed.- The larger and longer established the HOA, the more stable it likely is.

I also found several fire hazards,  like 20+ plugs branching off of one outlet and still on under of pile of stuff, an iron plugged into a light socket that would have caught fire of the light had been turned on, etc.

But having 2 properties plus cash in your pocket each month is way more cool than 3 properties with no positive cash flow - and you on the hook for every unexpected expense.I'd recommend the slower growth option and echo what @Jay Williams. 

If you find yourself in a situation where you may not be able to open a new transaction because you may not have the funds right now for EMD, lets chat, I may have some strategies for you or I can be your transactional lender helping you out.  Lets

I know this post is old but I am a local real estate agent that could help you out.  lets

There are minimal requirements such as size, egress, electrical outlets etc that are minimal required to classify as a bedroom but a regulating agency, such as City of Chicago can have stricter guidelines.