In the rental agreement it clearly states that the rented portion is just one bedroom with a shared bathroom.

In the rental agreement it clearly states that the rented portion is just one bedroom with a shared bathroom.

If it truly is just the paint and carpet and outdated but functioning bathroom and kitchen, a conventional mortgage should work as long as it appraises at the right amount, right?

From the photos I see on the listing, it looks like it could need:-Removing wall paper and painting-Kitchen remodeling-Removing carpet - replacing with hard wood floors- Not sure about bathrooms (no photos )Note:Roof was replaced 2018 so that is good.HVAC is newWhat do you think?

The kitchen and bathrooms were the biggest areas of concerns as well as the condition of the roof.

If it's beyond normal, do I just charge what it costs to fix it or do I have to discount the cost for "normal wear and tear"?

If you sign a new lease with a one-year extension by (TEN DAYS) this amount will be discounted to $1,400.

I'd hire in house management and give a discounted unit. 28 units is too small for anyone to look at it, let alone an hoa company. they typically want at least 4 staff on site. 

We didn't do anything major just a bathroom & kitchen remodel.Hope that helps!

we build ground up and don't collateralize anything. we build at a discount in Columbus Ohio and we build cheaper than every builder I've seen in our market and because of that we make each person self fund a retainer account. we don't extend any credit to anyone. opposite of what you are saying. builders that bring value call the shots.