I’m expecting inflation to come storming back end of next year.  

Challenges included navigating owner hesitations, coordinating renovations within budget, and managing high expectations for occupancy and pricing in a competitive rental market.

Under that scenario, what can one expect for capital appreciation?

Do you have any links on how long water softeners are expected to increase the lifespan of various components?

Some details can be checked on the assessor's website other details may require calling other agencies, a good local RE agent and talking to neighbors.Ask yourself how long you expect to hold the property. 

By placing more emphasis on the condition of residents’ dwellings, the new inspection model aligns more closely with stakeholder expectations regarding housing quality.

If it is a trailer park I would not expect significant growth in the coming future to give you my 2 cents.

If you are going to rent through section 8 housing, don't expect to get a good return on investment.

But zero chance I would pay the extra to sell to this one buyer or expect debt to be forgiven. 

There are a lot of considerations for both options before you can figure out your expected profit/return.