The duplex needs a new roof, new windows, update with the electrical outlet, it has termites and moisture damage (possibly molds) among some other things.

7) in my market, are cycle peaks pointy, or are they gentle?

Set your rules and gently but firmly enforce them.   6.  

If that is the case gently brooch the topic of how you may be able to save the seller from losing the house.

Tenants love the 'hypo-allergenic' flooring--usually solid vinyl planking, although a good quality laminate, properly installed with underlayment/moisture barrier works nicely. 

Regular laminate is durable but can get damaged by moisture. 

If I was a betting man I would say after a 10 year hold and 3 tenant turn overs that number will be significantly higher.. now if they get lucky and the same tenant stays the entire time and is Gentle on the house then you could hit that.

Tenant agrees to allow Landlord timely access to premises to do maintenance and repair.Tenant will notify Landlord in a timely manner of any damages or problems as they arise, including damages caused by Tenant, malfunction of appliances or fixtures, and water/moisture leaks and spots.Tenant will take care of the premises, keeping them clean and clear of debris.

Since we get a lot of snow and they won’t take their shoes off, the moisture ruined a lot of them.

Once we find a gentle way to get her out we will never use HUD again, I understand many make a living off these programs and I think that is awesome, but we like our places to be nice and get top rent for the area.