Initially my thoughts were to decrease the repair cost estimate I received from the contractor by 10k then recalculate the value.

The cost to replace will depend on whether those are still structurally sound enough to sister in new joists ( basic labor job plus lumber ) or if they are crumbling and need to be removed to be replaced ( major job, skilled labor, temporary supports, remove and replace ).

I guess I am a bit more worried about a bad PM company which could lead to even more of a decrease of return. 

Credit and Liquidity Issues so when the nation's banks face a credit crunch, often caused by a higher prime rate, its profit margins and cash reserves can feel the pressure, resulting in decreased lending in the overall economy, and consumer spending. 

Silicon Valley Job Growth and RE Price Appreciation@Gloria Mirza, I agree with you on job losses and/or recession before price decreases..You can see there seems to be a pretty close correlation to the rate of job growth and the rate of real estate price appreciation in Silicon Valley.

This was fine because as the owner of the house, it was my responsibility, however, it decreased my profit at the end when he did end up buying. 

Is it better to have the highest basis possible to increase depreciation and decrease the amount of taxable gain at sale?

Also, if interest rates go up that high cap rates will have most likely gone up, decreasing the resale value of the property.  

Again, I'm concerned about demand decreasing going forward counter balancing the upward pressure neg interest rates should have.  

Source: Washington-demogrphics dot comPopulation is decreasing and the median income is slightly rising.