That outside room (I'm wondering if that was an addition) needs some new drywall or paneling or something.  

It is panelized housing.

@Brian Pulaski here are the details:- Paint inside and out: $3900- Carpet & Grout cleaning: $1000 (Carpet was in pretty good shape)- General cleaning: $300- Replace some light fixtures: $300- Washer/Dryer (used but in very good shape): $360- New kitchen faucet: $100 (I can install it)- Repair some panels in the pool screen: $300- Repair A/C: $2700- Repair roof: $2200- 10% padding: $1255Total: Aprox $13,805This would have been my first deal and it is the second I had to pull after inspection (first inspection came even worse).

I am sure they will make the best decision, clearly reading the panel replies both options were discussed, no wrong or right ....

@Aravind Sri There is a wholesaler's event tomorrow night if you are interested near westchase area:http://blog.realacquisitions.com/2016/10/real-acquisitions-houston-expert-wholesalers-panel-october-18th-2016/

I had to walk away from a deal last month because the electricity had been off for more than a year and the city would not reconnect without a full electrical panel upgrade and whole-house rewiring.

Wall panel heaters we've put in the one rental we have with no central heat or air:https://www.amazon.com/DeLonghi-HMP1500-Mica-Panel-Heater/dp/B005MMN75G/ref=sr_1_2?

Traced it back to a buried sub-panel & disconnected it.Good thing my guy didn't slam the shovel down into out.

New kitchen, all new bathroom, all new plumbing & electrical, added walk-in bedroom closets, all new 6 panel doors & added an entrance foyer with storage. $7200 included extra labor. 

I am in the middle of a redoing the electric now on my six unit, and I have to upgrade the service, replace all the panels, put in hallway lighting, etc.