Carpet is wet and either paint or plaster is starting to chip off the wall (hard to tell from picture).House is 60 years old in Commerce City.  

You only need to repair chipping paint, of course!  

I wanted to add one piece of advice in regards to capex is if you decide to make an offer make sure you include an inspection contingency on your offer and pay for a complete home inspection;- it will help identify potential future problems (for example if the roof is 15 years old and they put on 20 year shingles you should plan for a roof in the near future)-any major issues that are identified can sometimes be used a bargaining chip, possibly the seller will contribute money to fixing those items -you can use the inspection to dial in an appropriate number to budget for repairs -Anything can go wrong but the report might give you piece of mind knowing that everything is in good repair and well maintained.

In our (not blue chip) neighborhood the houses go for $2 mil now and then need a gut reno.

If I just wanted to park $50k out of my own pocket in a place that I hope it will appreciate and that I know it will spin off a little cashflow in the meantime, I would choose dividend paying blue chip stocks.

Before I started I remember a mentor telling me that RE investing is like potato chips - it's impossible to stop after just one! 

We have a rental where groups of students have chipped in and leased a large house. 

The property that stands out slightly more than the rest will require repairs and updates, not necessarily immediately but soon (as far as I know).My wife and I still have some debt, but we haven't been chipping away at it quite.

Chipping paint: LL responsibility. 

No chipped paint!