With both options, or any other options you may suggest, would including a 203k to help cover the costs of paint, house-specific items such as tiles or carpet, etc. be possible? 

The electrical and plumbing plans are also color coded so they can easily see with a glance where specific items go.

Not only will CHA make the units more desirable, if you ever want to sell it will be a huge plus for the next buyer that the electrical service & heating/air have already been upgraded. 200 amp service & CHA are two specific items I look for on purchases, even if they need to be repaired. 

If you want help, write a list of the specific items that showed up in the report that must be repaired by close, in your counter offer.  

@Amber Paul I have not heard of anyone adding specific items related to section 8.

He itemizes specific items for us to be either depreciated OR finds a way for immediate write-off the year that we spend.

There are very specific items here to analyze, and many that are usually analyzed that you can throw out. 

But with some specific items for Multifamily that new to be reviewed.

These are the main concerns which before my specific itemized calculations, I'm estimating about 15K or more to fix these issues, (excluding the roof). 

The only time I evaluate ROI on a specific item is on additions, adding a bathroom, finishing a basement, etc.