I'm like, I don't do walkthroughs with tenants (thinking to myself, especially tenants like this...) and that if the house is in the same condition as it was rented in and utilities are closed out, he'll get his full deposit back.He then has his fiance start hitting me with a barrage of letters they are texting me about their move out date.

5) The property is in functional condition just outdated.

Big ticket items or "outdated grandmas" house from 1958 and mostly cosmetic? 

Look for distressed properties or outdated homes that can be renovated and sold for a profit.

Before signing the lease with these new folks, I re-confirmed with existing tenant that they still wanted 2/29 move-out date, and that they were able to have the apartment move-in ready condition for that date.

I have seen other landlords put verbiage into leases where tenants pay double if they stay beyond the agreed move out date, and if I wanted to be tough I could do that. 

Steps I was thinking of following:1) Get electrical up to code since its all 2 prong outlets and the panel is way outdated.2) painting of the whole house3) Demo kitchen and bathroom4) Renovate kitchen/bathroom5) install new floors6) input new appliances7) input new light fixtures8) etc.

The low appraisal may have been impacted by the small number of similar properties and the outdated comps.

=> We built it for ourselves because we were sick of the outdated lists on propstream/dealmachine.

create an amendment to your lease agreement that requests all holes will be patched up at move out date and tenants are solely responsible for tv/mount will be properly installed. request for receipt/payment in the amendment. no biggie. i allow this all the time.