In many cases, the floor between the two is a conventional wood floor- i.e. wood joists, subfloor, and floor with carpet or tile as a walking surface.

They are cheap enough on amazon.How old is the carpet and how big of an area is it?  

If we put a tenant in the house we will have to pay the state back their $8,000 of assistance.Loan Balance: $150KCapital Required to Rent: $10K ($8K to pay out the state and $2K that I put into professional cleaning and new carpets.) 

Should I just carpet (1000 sqft)?

But you made a good suggestion, and I agree it'll be messy for me to determine what's tenant damage and what's not (even with the move-in report). 

After the eviction process, we got back possession and discovered significant amount of damages from feces on carpets and walls, broken garage door, broken fence door, broken laundry washer, to unimaginable horrors on the trees, and landscapes.

It could get messy if you didn't focus on strictly doing and minding your own business, with clear goals and exit strategy set.

I am planning on installing new carpet, countertops and paiting the cabinets right away when purchasing.

I would give them the red carpet treatment.  

Replace the blinds, get rid of the carpet, change out the light fixtures, and do a fresh coat of paint.