And dont include repair costs to that figure, only improvements to the property.

Make sure you’re working with a lender who has experience with 203(k) loans and a contractor who understands the program’s requirements.2.Loan Process Can Be Slow – Unlike a standard mortgage, the lender will be heavily involved in the renovation funds, which means more paperwork and potential delays.3.Strict Repair Guidelines – The work has to improve the home’s safety and livability, so luxury upgrades usually don’t qualify.4.Living Through Renovations – If you go with a Limited 203(k) (up to $35K in repairs), it’s usually manageable, but for a Standard 203(k), major work might require you to live elsewhere for a bit.It’s a solid strategy, just make sure you’re working with the right lender and contractor so things go smoothly.

Although in the case of vacancy and repairs, it's not about being conservative, it's about being realistic. 

Painted and flooring throughout. repaired porches and new roof and replaced two broken windows.

Or nitpick small things that need repair until it exceeds $500?

However, the damage as described is greater than normal wear and tear and so, deducting from the security deposit for repairs is reasonable.

That being said, do you have any contacts you recommend for repairs?

You need to figure in taxes/insurance, vacancy, repair, utilities, and capex.  

Unless you are getting a heck of a deal I would recommend avoiding a foundation issue property until you have a team of contractors that you can count on and can find out what the repairs would run. 

Since I own these properties (and the home I live in), I was explained by the broker that when I visit my properties, even to do repairs or haul appliances, I'm essentially just transporting tools/appliances from one of my properties to another one of my properties (not a business).