The supply demand equation is just shifted too far to the demand side and it will take years to re balance that.

Superficially, there is a supply and demand issue that isn't going to be "fixed" anytime soon; especially with local politics being the way they are, and the rising costs of labor and materials.

They have offered to supply property management and to complete the rehab, but they are unseasoned at both. 

Once you enter attorney review, the seller should supply all current leases, historical utility bills, etc.

They have offered to supply property management and to complete the rehab, but they are unseasoned at both.

Tenant supplies their own appliance (refrigerator) after you (landlord) offered to provide prior to signing lease (they refuse, they will bring their own).

Supply side is most probably copper, though galvanized is possible.If you were planning to flip the house, you could apply lipstick and pass the need for a mid-life retrofit off onto the buyer ... though if your objective is to make a career out flipping in that markt, you might think differently.If you are planning to hold this property as a rental then it is in your long-term interest to upgrade as many of the building systems (starting with the envelope) as you can manage before applying the cosmetics.In your position, if keeping the property as a rental,, I would plan to upgrade the building envelope (walls to R23, roof to R40+), install a proper vapour retarder and HRV.  

Back it up by supplying them with all of the numbers, and a concrete plan of how you're going to execute the work and earn them a return on their money. 

They should itemize it (not down to every single supply, but at least "kitchen cabinets", "Master bathroom" etc.) 

Based on the law of supply and demand, your hypothetical statement rings true.