To remedy that, the carpets should be ripped up and sealant applied to the subfloor, at minimum.There are also tiles in the smaller upstairs bathroom that are lifting up and creating a safety hazard; putting a rug on top is not a sufficient solution.The house is in a condition that materially interferes with the health of household members.

From my research, I'm seeing $100-$150/sqft depending on complexity and material.

Replacing one bad fixture between material and labor can end up being 3X the cost of buying the better quality fixture in the first place.  

Little paint and the contractor I found let me buy the material and only charged me labor.

You could argue that your property has not materially improved and does not meet the same value as the most recently sold properties.

The cost of labor , materials , property taxes , inflation , interest rates  etc .

Save for some unusual complications, you seemingly met all the conditions for your tax benefits.Now, to traps and gotchas.Trap 1.

Most are flimsy, thrown-together with uber cheap materials. 

@Steve CrispIf you meet the material participation guidelines and qualify for the short term rental loophole you should get a free cost segregation estimate to see how much you would benefit from the accelerated depreciation. 

The appraised equity rarely materializes on a sale in these markets but the appraisals offer false impressions of the "asset" that was acquired.