i wrote 5 because that's about the type of rehab we want - carpets, rugs, "splurge" items like updated appliance, ceiling fans and a cheap/nice tile in Baths.what about the reo situation - your thoughts (or anyone elses) on offering well below their list prices?

(no rug doctors).  

Unless the rugs are abused and unreasonably horrible, I would consider rug cleaning to be my responsibility in between tenants.  

They can always use throw rugs if they want carpet.Tile is very common in your area and easy to match with the typical southwest motif found in the area.

They may love purple shag rug on the walls, but if they bail now you're stuck with purple shag on the walls.

After closing, I began searching for a General Contractor and started on some basic demo (removing old appliances, cabinets, toilets, rugs, etc.).

Another nice mid level option I've seen is to paint the hardwood then get a pre-made area rug 10'x10' or 10'x12' from lowes and staple it to the floor in the middle of the room.

Most units are in decent shape but one of the units with 4 pets has the rug covered with area rugs.

The stains in the carpet that were covered by area rugs.

If it has to do with dropping things on a hardwood or similar floor that kind of noise, the upstairs tenant can put down an area rug to dampen the "noise".