Regarding borrow's DTI, Chase thinks that this item is not that important.I wonder will my high DTI impact the loan underwriting?

Refer to your state, city and county resources for any required items, or recommended inspections. 

$540 is not unreasonable for a home of that size and the items you mention.

In my personal experiences a lot of structural items start with bad drainage.

Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

Some may have very small thresholds for repair holdbacks on purchases but this is typically limited to make ready items not to exceed $2,500 in costs to cure.

I would certainly advertise that and add pictures and themed items to house.

I think you're confusing the quantity of items with curb appeal.

They make ordering items from different companies easy, and you get discounts from each store that has partnered with them. 

@Jacqueline Wright  Every auction is different so the first items to check: do they allow financing if you win the auction?