I saw this was in far better shape and listing agent thought it would need $5,000 in repairs to make rent ready.

I don't care if it is real estate agents, contractors, lenders, pizza makers, service workers, black people, white people, men, women, young, old, blondes, brunettes, fat, skinny, etc.

driveatank.com or indoor trampoline park

They are definitely money makers!

Minimal rehab to make rent-ready.

Due to the age of the system (16 years outdoor unit) (11years air handler) and the current EPA phase out of the old r22 refrigerant I recommend the heat pump system be replaced.”Neither company is willing to replace any parts on the unit due to the age and not being able to warranty them.Here is the scope of work for the price of $3750Install one new indoor air Handler with 10kw heat strips,Transition duct work to fit the new air handler,Install outdoor heat pump,Connect all high and low voltage wiring to indoor and outdoor units also to the thermostat,Install in-line PVC P-trapClear PVC drain line,Evacuate system and charge with refrigerant,Check/test system.Install Honewell digital programmable heat pump thermostatComplete system install will come with a 10 year all parts and labor warranty.What do you experts think?

He also will warrantee  the HVAC but i can't do business with the unit indoors.  

Doesn't seem like your analysis has any account of all the repairs needed to make rent ready.Sheetrock:  $25 to hang a sheet, $25 to skim/patch a sheet, plus the cost of each sheet.Paint: about $250 a room depending on how expensive you go with paint.Flooring: $2 - $8 a sqft depending what you end up doing Get all the mechanicals checked out as well.  

Nice to meet another vegie on BP in a bacon maker's discussion.  

There's really no greater risk of a fire with a normal indoor smoker vs the one with the tenant on oxygen in it.Now if you want to go with a no smoking policy then do it, but I wouldn't justify it (to yourself let alone them) that you're in some way making things safer/better.