The bathtub will need to be refinished.The hardwood floor underneath the carpet looks to be in quite good condition, and should only cost about $1000 to refinish.The painter is due to start work on Tuesday, beginning with scrubbing the walls and ceiling and moving on to primer and paint.

Are you using the same paint colors throughout the house?

I've been involved in several areas of residential contracting, and have owned businesses such as remodeling, paint contracting, and landscaping.

Sanding and priming chipped paint in two spots.

The most common examples are hand railings needing to be installed and peeling paint to be sanded and repainted.Rehab loans can not be closed quicker than 60 days, at least I've never heard of a lender that does one quicker.

I then subtract an assumed $20K for repairs (paint, carpet, seller's lies about repair costs, landscaping, etc.).  

@Allen Fletcher is right on in his assessment of the actual tax being dependent on past use (actually 500K tax free is the top exclusion if you're married and have lived in the property for 2 out of the last 5 years) and future strategy (depending on your path you could exempt all or part of the tax in a 1031 exchange).Your accountant paints the current picture better than anyone.

So this property needs some work (cosmetic, paint, updated fixtures, landscape, hip styling) and I can get a loan for it and pay for the rehab expenses out of pocket.

Head out to one, find an investor doing the type of investing that you also want to focus on, and offer to help them for free with whatever they may need (finding deals, marketing, painting their flip, organization, etc) in exchange for their mentorship throughout your first deal.

@Enrique Saucedo, I did a substantial amount of remodeling on all of the units.The first 7 units, in Mountain View had essentially the same level of work: New flooring, new oak kitchen cabinets, new granite counter tops, new appliances, new toilets, new tile, grounding of electrical outlets, sheet rock, paint, new fixtures.