We are pushing the closet in the master back to create a larger room3.

The main electrical panel is located in the same closet as the hot water heater and I'm wondering if we are going to have issues come inspection time.

We do have 2 recessed lights but luckly its below a closet.  

We solved the heating problem with portable propane heaters. 

i.e. framing new closet doors in the bedrooms, to 60" width, which is all fine and good, except that he didn't take into account the trim, and I had to make some custom barn style sliding doors.The probate was a deal that our agent had in the pipeline from January till June, they just hadn't cleaned the house up, nor taken it through probate by the time we looked at it.Best of luck to you on your flip!  

My ideal property is one where some or all of these major systems behind the walls or hidden in utility closets are brand spankin' new, but all the cosmetic stuff (the easy and inexpensive stuff that you can see and adds the most value) is just awful, worn, dirty, dated, cluttered, and smelling of cat pee and cigarette smoke.

The stairwell going downstairs to the shared laundry area would then be removed at that space in teh upstairs would become an area for a stack-able washer/dryer closet area for the upstairs unit. 

The first room + closet is 175 sq ft. 

I would probably try to take one or two of them off - either one that's already loose, or one in a corner or closet if available - and see what the ceiling is above that. 

Common areas that tenants miss are parts of the range and range hood, the far reaches inside cupboards, ceiling light globes, inside the furnace and hot water heater closets and the heat ducts (take of the heat registers/grilles and see what has dropped into the duct).Read the information in this link:http://www.nolo.com/legal-encyclopedia/new-jersey-...It will give you some insight on how the landlord should have approached the itemization and return of the security deposit in New Jersey.