There are signs of some water damage. 

@Nathan GrubbTotal guess: Sometimes when the house/bathroom is warm, the cold water will cause condensation on the toilet tank.

Inspector says potential standing water issue during heavy rains.  

I have a property I am trying to sell and the buyers want to close 6 months from now when they are good and ready to move in and would like to keep their inspection contingency until then in case there is any spring water damage or something else happens between now and then.

Water heater.

Central heat/cool, and currently gets $850 per month base rent, NNN lease where tenant pays (reimbursement) for property taxes and insurance.Lease Term: 10/1/17 – 9/30/2020Base Rent: $850/monthNNN Tenant Reimbursement to Landlord: $170/monthLandlord Annual Expenses: $1,020 water/sewer/garbage, $1036 property taxes, $506annual property insurance.Gross Annual Income: $12,240Annual Expenses: $2,562Net Annual Income: $9,678Zoning CMS Building Class B (Residential 3/1 Home)-Lease Term: Month to MonthRent: $1,100/monthGross Annual: $13,200Net Annual Income: $13,200 Combined GROSS ANNUAL INCOME: $25,440 Combined ANNUAL EXPENSES: $2,562 Combined NET ANNUAL INCOME: $22,878I have not looked at the property, based on pictures looks in good condition & would probably need an inspection report to see if there is anything major that needs to be done but after running the numbers factoring in all costs ( *considering this would be a cash purchase) the ROI would be around 9%.

Is the foundation cracked, falling in, water leaking, etc?

These are the only true recession and internet resistant.

Meaning, you start small, in a different area of real estate and finally after 10 years you can test the commercial real estate waters?

If the property is quite old or in a state of disrepair, needs a new roof / foundation / water heater / HVAC / etc., you can expect quite a bit more than that.I see you have 12% combined for monthly capex + repair reserves.