This excludes heating, AC, dishwasher, and oven stove units that breaks because of normal use, and not because of negligence of tenant.

We are having our plumber install gas lines to the dryer and stove because we have gas appliances.

might i be so bold to offer an opinion while being such a newcomer here ...but its kind of funny how you can read "not to touch a hot stove" 100 times and still burn yourself.I think the majority of "experience" is gained from "doing" and not "thinking" .... unfortunately, experience is typically "bought" from making mistakes.At the same time, I'm not saying to rush into anything (in life) blindly.

We can pick up a quality used stove for on average $100-125, versus $600+ new.  

However, the reason I am hesitant is because of the known future CapEx:-Garage roof (250 sqft) will need to be replaced in 2-3 years: $2000-House roof (640 sqft) will need to be replaced in 5-9 years: $5000-Water heater is 5 years old and will need to be replaced in 5-7 years: $600-Stove and fridge are new but after the current tenant moves out I'd add a washer and dryer: $900-Exterior paint looks good now but will likely need to be redone within 10 years: $1500-A few of the windows are old and would likely need to be replaced within 10 years: $1500So that's about $11,500 of known future CapEx.

We actually cut the two burner electric stove into the counter top (bought at Walmart for about $200), and purchased a full 18cuft fridge.

.- Full cosmetic rehab including flooring- Roof Replacement- Septic Backup- Small Kitchen Fire (Appears to just be stove and hood)What options to do have to buy this home?

If you're looking in Southeast or Southwest DC, vet the HOA's as many are very delinquent which don't allow for financing causing them to basically be apartment building owned by individual investors.4) I would advise looking in an area of Northeast DC that sits up against Northwest DC as that area has better growth potential without the risk associated with SE and SW5) Your Cap number can be smaller if you get a rehabbed condo as items like Dishwasher, Refrigerator, Stove, Washer & Dryer will all be new like the condos I do.

We are wondering if that's common or if we should move oven and stove to main counter space and move sink and d/w to island. 

Really the big thing they are looking for is to make sure the property is in decent shape and Insurance companies do not like alternative heating methods such as space heaters and wood stoves. if your property has any of those heating sources its almost guarenteed your property will be inspected.