I was thinking I'd do carpet upstairs for the tenants comfort.

This way you have a working and clean bathroom without the thousands in gutting a bathroom.

If you are having an insurance inspection done, they'll most likely just walk the outside of the property so clean up any obvious things like trip hazards, broken roof shingles/tiles etc.

Clean up, paint, make it look nice, organize etc.put a salaried manager.Empty shelves.

The way I have done it in the pass is through note purchase agreements recorded to keep the transaction clean. 

Quote from @John Mason: @Andrew Postell Yes it doesThe whole point was that I wanted to buy a house which is inexpensive and convert into an airbnb a year down the line and obviously if I have  a pool with a nice deck it would mean more bookingsExample buy a house without a pool for 300 k, live in it a year and have the pool put in and then change it to STR and move out and buy another house ..I would target a home with an already built in-ground pool, but maybe needs some cleaning and TLC in the backyard.

Do you charge for small cleaning items, like windows weren't cleaned, oven needed a quick cleaning and kitchen cabinets needed wiped out?  

They are often compensated much less than the cleaning fee the host charges guests.

It replaced tile and carpet. 

The only reason that you can get a distressed property under market value is because it is a mess that the owner and pretty much 99% of the population either don't want to or can't clean up.