If you inflate ARV, diminish repair costs and lie about the property value it won't close a deal for you, It will just tarnish your reputation and make them shun you next time.

You’ll find post after post where the STR host is suing the LTR property owner for the rents they lost because the repairs weren’t made the same day and their guest cancelled. 

This can include opening some walls here and there so the inspector can check if everything is built to code, then you repair or tear down depending on what they find. 

I would suggest you include repairs/maintenance, utilities, turnover, and vacancy in your monthly expense to truly estimate your cash flow per month per unit.

Bigger Pockets calculator asks the following:Purchase Price: 153,000closing costs 7650 (5%)20% down 30600Interest rate 6.5% 30 year loanRent $1330Property Taxes 451/yrInsurance 850/yrCapEx 5% ($66/month)Repairs 5% ($66/month)Vacancy 3% ($39/month)Management 8% ($106/month)Leave utilities blank assuming the tenant puts them in their name, BP calculator gives me 5.33% CoC ROI, which is better than what I originally did.

Building the right way the first time lowers future repair and capex costs. 

it looks like btw 2011-214 there were sewer repairs to the main and connecting to the house.

Vincent, Yes - you can do this 100% most of the time when someone utilizes a hard money or bridge loan it’s because they intend to do some deferred maintenance or repairs on the property.

Estimating repairs, comps and everything else that creates an ARV seems to be the toughest part of the process.

What is the intended ARV (after repair value) + what's your exit strategy?