My insurance company won’t write a policy with it unless it’s a specific Builder’s Risk policy for construction until the knob and tube is replaced.

I would charge them a depreciated value for a replacement.

Do you guys also attach receipts of repairs and items to replace when you return the deposit to move-out tenants?

Recommend you have your Engineer do cost estimates. 

The city's rapid development can be attributed to the abundance of white-collar jobs, and it's often said that they have the highest per capita number of engineers or individuals with higher-level degrees.

Hey All,I have a background in Civil Engineering working for around 40 years doing land development, floodplains, and waste management work, among other things.

DSCR is still Income/Expenses, but they add in more expenses like vacancy factors, management costs, replacement reserves, etc into the expense side.

I haven’t went live with the property yet, just doing some TLC and addressing Items that need to be replaced/ upgraded 

I have SEO engineer who quit his full job in finance, went to MIT , got engineering degree and is dedicated to online marketing services.

If you'll be living in the house and renting it from your parents that is fine for a 1031 replacement (make sure it's an arms length transaction of course).