This is from my personal experience:
Let’s suppose you find a good investment that you can use as a rental. It’s probably going to have been built somewhere between the early 50’s and the early 70’s and will be block construction (do not consider wood) and have 1000 – 1500 square feet. In most cases, in order to get a bargain, it will be a house that needs EVERYTHING in order for it to become a property that rents for between $1300 and $2000 per month at 2016 prices, depending on the amenities.
The property will most likely be sold “AS IS”, so the contract I use specifies, “AS IS WITH RIGHT TO INSPECT”.
A pest inspection on a block house is usually clean, and a Home Inspection is pretty thorough, but only in a general sense. I have found that drains, septic systems, wells, and other concerns require a separate inspection for complete peace of mind.
For instance, the 4” cast iron drains, under the slab, may have built up a lot of scaling, preventing them from operating properly and reducing their effective size to 2” or smaller. A camera inspection of the drains will tell you if hydro jetting is needed to remove the scaling.
Many properties have a septic system. They are common here, even in close in neighborhoods. Definitely get an inspection of the tank and drain field.
Also common in some areas are wells, which are fine as long as they are treated with a good filtration system, which can be bought or leased.
The goal is to have a property that will give you peace of mind, make your tenants happy, and earn money for you for years to come.