I use the inspection to get a price reduction as well as to uncover issues that may not be immediately apparent.  

This should uncover any issues re: lead paint, asbestos. 

All should be taken into account when investing, but it is risky to be dependent on appreciation alone for an investment.Given what you've said, it sounds like the value of the property should be going up so I would definitely hold onto the place unless you can uncover other opportunities where you strongly believe you'll be able to generate a higher ROI by selling. 

We have seen uncovered storage do very well. 

I agree its a bit risky, but as we uncovered..there were old tax liens on it which made it not workable. 

Our initial research uncovered that the house was purchased about 3 weeks ago by a mortgage guy from Washington state for $499K.

So you can imagine my surprise when we got a bill one month for $4100.I don't know exactly what was done when they updated our meter... but apparently that update uncovered a $4100 balance that the seller owed. 

There are many other issues that a inspection will uncover besides what is behind the partially finished basement walls.  

There are PMs that specialise in D class properties.

Also, make sure that you are judging based on actual expenses and not proforma numbers  I would demand that all units be inspected to see if all future expenses will be uncovered.