He took pictures of every single detail behind the door, any minor issues with the walls and mentioned that the entire house needs paint, I need to resurface the bathroom tub because it is hazardous, all faucets and bathroom showers need to change.

These types of intermittent problems are frustrating for users because BP developers check on things and say "running fine" no issues seen.Later on the problem can resurface etc.Maybe they have a log history to track when a random event happens.

I'm surprised to see them resurfacing right now before another recession. 

I think this would have put you in a situation that you regretted later.If the deal resurfaces, I would recommend you move forward only if the previous owner is out of the property.

"Gotta resurface that asphalt driveway due to 2 noticeable chips...violates code and its an eye sore".My point?

If you have a roof that needs to be replaced, parking areas that need to be resurfaced, HVAC systems on life-support, etc. you'll likely have to come out of pocket as your cash-flow wouldn't have yielded adequate reserves.

The place is really in perfectly adequate condition, but our plan is to go in and take it to the next level... replacing carpets with wood plank tiles, installing glass tile backsplash , staining kitchen cabinets dark and adding satin nickel pulls, adding stainless appliances, a dishwasher, disposal, built in microwave, resurfacing countertops...

I resurface cabinets and countertops.  

All flooring needed to be replaced, there was some foundation issues from the earthquake of 94' (Northridge quake), the bathroom was in need of a full gut and rehab new, all bedrooms needed new light fixtures, closet doors, and some electrical upgrades, plus the driveway needed to be re-surfaced and the chain-link fence removed and replaced with a more appropriate wood fencing for curb appeal.

Drive down Silver St in Dover (A grade neighborhood), which has a perfect newly-paved street, then go to the good side of 108 north of downtown (where I live, solid B+ Neighborhood), which has streets in good condition, but Unitil cut them up a few years ago and they haven't been resurfaced yet.