I lived in NYC and worked for the city until I was terminated for not taking the covid vaccine.

My wife and I don't go out to each much and we live relatively modestly. 

From walk in shower, tiles on shower walls, tiles on bathroom floors, new LVP flooring in living area, new paint, and among other littler things.

I have improved fair rental value and value by increasing the kitchen size; adding an island tearing down walls between the kitchen and dining area and living area, etc.It all depends on the particular property. 

Alternatively, if your daughter lives nearby, why not have her buy into it and live there?

The tenant deposit covers DAMAGES, not wear and tear. 90% of tenants want a decent place to live, market rent, and a good tenant landlord relationship, and pay rent on time.  

I live in an apartment with 4 rental units and a studio.

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

One potential route is using a FHA 203k loan for the purchase and rehab if you're okay with living in one of the units for a period of time.

Typically a furnished rental will appeal to someone coming to live in an area for a short to mid term period of time.