The property condition report state that it has electrical damage, and plumbing / sewer/ drain damage, all which was calculated into the rehab budget, even with some extra wiggle room.

How to properly assess property damage and amount it would take to repair?

Then, you remove all of the damaged materials, and depending on what happened underneath, if nothing, then you're done.

We're in the process of suing the tenant for the back rent and damage to the unit and I'm guessing she called the city to report the violations to claim unsafe living conditions or something.

HOC: Atlanta Property Condition Report Item Description/Condition Item Functionality Functionality/Test Notes_____________________________________________________________________________________________________________________ Cooling/Air-Conditioner: Damaged --Heating/Furnace: DamagedHVAC tested and functional?

I've had to hang plywood myself to limit water damage from a loose door (wasn't going to break anything that they'd have to repair, just cause me problems in the remodel), I've also told the bank to get someone to clean up trash left behind by illegal dumpers. 

I mean red ink saying " hey I loved the dress you were wearing after you came out of the shower...OK OK OK.. maybe that is a leeeel bit exaggerated.. but my point remains.Just say what you need to say.

First of all,  Security deposits  as rent should ONLY occur on the last month, and never before then - - otherwise you have nothing to hold over for damages on move out.QB is poor when managing security deposits, and when I asked this on a QB forum, you should have seen the procedural mess that was suggested to make it all work. 

The following items were neglected in order to save money, as examples: our hedges all had extreme white fly damage, wood rot due to water damage and putting off painting, our pool restrooms have massive holes in the roofs and we are in the process of reconstructing 2 of them.

They damage the user experience -- something I'm not fond of.I appreciate you saying something.