Buying an older home from the 1950s can definitely come with surprises, and the need to replace electric, plumbing, and drywall is a big job.

Also just keep in mind characteristics of the property that carriers wish to avoid such as roofs 10+ years old, old/recalled electrical panels, no impact windows etc. 

I tried to estimate 20% higher on repair costs since i do not have a wealth of experience estimating yet, there is some minor water damage, and some heating and electrical that needs to be replaced, which is where most of the expense came from.

My friend scheduled for the electricity to be turned off after the tenant assured them that they would be gone by September 30. 

@Dee Mandrekar highly doubtful there's such a big difference between market rent and S8 rent.First off, the GROSS S8 amount includes specific amounts for all utilities - electric, gas, water, trash, etc.We do NOT recommend including utilities in the rent because S8 only pays a certain amount and the owner is then exposed to tenant abuse of utilities. 

What's the condition of major systems like plumbing, electrical, and roofing?

Old electric, just all the issues.

Ceiling fans need to be secured differently than a basic ceiling to be stable and this is of course electrical work so allowing a tenant to potentially do it is a liability issue if they got injured. 2.

At 1 community there is a year round contract for 3 bed-bug extermination heating units, year round, and there at work 24-7.     

It was expensive but included commercial liability, premises liability, alcohol, a bed bug extension if needed, and so forth.