So if there is a switch cover that is broken now, you can't charge them for it when they move out as you have no idea if they did it before you bought it or if it was like that when they moved in.

The city of Harrison ID where our lake house is located have been upgrading the water system.

It’s already “broken”. 

I also advise they will be responsible for broken shades.

Use rental earnings to fund future upgrades.

Requests for upgraded appliances?

With $60-70,000 worth of upgrades including capital expenditures value will stand at $800,000.

The pro forma the builder put on our page shows 11.5% CoC ROI (if you look at the bottom of the page where the ROI is broken out). 

And most deals don't make sense as-is before you develop them - upgrading units / increasing rents. 

In my experience, many insurers will cover the house but not the roof, ensuring you have protection against fires, broken water pipes, falling down the stairs, etc.