You never know, she may stay there 10 more years and pay down 1/3 of the mortgage for you without you ever having to replace carpet, paint, etc.  :-)Sounds like a decent deal.  

When I walk through a place, I don't see how it looks but what it could look like based on the type of work I am capable of.I personally like homes from the 50s (good thick hardwood often hidden under a bad carpet) but avoid late 60s and 70s (popcorn ceiling = asbestos) and often cheaper construction grade.Overall, I found that flipping is a good way to turn your free time into equity/money and a great learning experience but it is hard work and definitely not for everyone.

@Jason Coleman, if you're still looking for someone I recommend Crystal Carpet and Flooring.  

Maybe its worth it for a quick flip if all it needs is paint and carpet. 

We're talking about tearing up all the pee-soaked carpet (dogs..) and bleaching/disinfecting the concrete foundation underneath, replacing a majority of the second floor sub-floor, fixing the roof, fixing the HVAC, repairing the garage (door hanging on by a thread), scrubbing and disinfecting all the cabinets (roach feces everywhere), tearing up and replacing the landscaping, fixing the roof, inspecting and repairing any water damage... the list goes on and on.

The unit is about 1000 sq ft of carpet.  

Flooring was way better with the Carpet Shop in Williamston, NC.

For the major project I had them handle, replacing worn out carpet with Vinyl (Wood Patterned) Flooring I was quoted in writing $2,100 "out the door." 

Talk with a CPA but if this is your property, then I have no doubt you will qualify as a RE ProIn regards to Cost Segregation, this applies to your "non structural" items like carpets, appliances, floors, hardware packages, etc.

Or are there areas where you can improve the house in general, such as hardwood under nasty old carpets that you can refinish.