Roof, water heater, front door has issues smoke alarms etc. etc. etc.

and won).My lease had specific things about smoking, fireplace usage, lawncare, HOA restrictions, etc. 

Omar:Home prices in southern Ontario - particularly around the Big Smoke - are insane.  

@Ryan ORiordan $3000, holy smokes, how big is this fence and what's it made of?

And now that the local government went ballistic and maliciously shut most of Airbnb down by scaring citizens and owners with exorbitant penalties (the dark side of the force is strong), this topic is off the table in this paradise until things change.

I would never "gut" a house unless it had an issue requiring it (water and mold, smoke damage, termite damage, etc)We usually will "fix" something instead of replacing it if we can. ie, a door with damage gets wood putty or sheetrock mud and then a repaint.It's always a balancing act to put a property in market condition and still have the margin  for adequate cash flow.

It really depend on how dark you want the distressed to be.

Smoke detectors , working toilet working sink , good working outlets , functional doorknobs no trip hazards .. simple stuff !

Or is cash flow so important that it negates any advantage of low-down programs in this type of hot market where house values are smoking rental market?

You don't have to smoke or drink to come out and enjoy the company.