If you use insurance to make ordinary repairs, it will eventually drive up costs.

ARV $160k after $40k in  repairs. 

Nevertheless, I'll likely need the cash to cover the mortgage and repairs.

If it is/was an automotive repair business I'd be concerned about underground storage tanks, surface contamination, etc. 

In 2023 we also had a major repair take place.

All turnovers are handled "in-house," with no outside bids or quotes to ensure market rate repairs.

I've sold rentals before and almost always was asked for a copy of my Sch E.Also during the due diligence and inspection, try to talk to the tenants directly to confirm how much they pay, and also if there are known issues that haven't been repaired (roof leaks, frozen pipes in the same area every winter, etc).

In the process of coming up with a legal agreement between us, we cannot figure out how to address when we have differences on how to solve disagreements on repairs.

Some I can think of off the top of my head would be salaried sales reps, basic record of past performance, proper offering documents, back office procedures, policies and procedures for proper vetting of investor accreditation. 

Based on the results, you may want to renegotiate with the seller if repairs are needed or confirm the buyer's interest if the property condition impacts the deal.