We'll be doing flooring (I've heard it's best to stay away from carpets with tenants), countertops, paint, baseboards, etc.  

They are thinking about proximity to schools, commute times, and granite countertops, and they are bidding up prices based on these considerations, not returns.However, when the market tanks, you will have an advantage, because the homeowner buyers will be scared witless, and you, knowing how to underwrite a deal, will swoop in and buy a bunch of bargains and make an absolute killing.

Assume a near full gut job, repainting, vinyl flooring, newer appliances, some faucets, a shower head and new toilet, change a countertop or two, some pre-fab kitchen/bathroom cabinets, maybe throw in a broken window and screen replacements and some minor plumbing and electrical repair?

I'm a contractor and doing the work myself, $9,000 and 4 months later, new bathroom, 40% drywall replacement, painted the solid wood cabinets, new tile countertop & mosaic backsplash, all tile floors, new plumbing and light fixtures, washer & dryer hookups, new windows, new baseboard heaters, doors & trim and a wall tile design for good measure.

One that I just rented is newly renovated with new kitchen cabinets, granite counter tops, new appliances and new heat and central air and new flooring.

NW Granite is by FAR the best pricing and service (on countertops at least, that's what I've used them for)

Go to your local countertop or cabinet company and ask for remnants of marble/granite/Corian/etc.

I still have to do floors and countertops to really make it cash flow.  

Jessica Thompson - for countertops I typically leave that out of a contract and go directly to a countertop supplier for furnish and installFor cabinets I have contractor provide labor only and I will buy them.

Cabinets are specialty made and same with counter tops.