That water heater is costing you $100  year. but you don't see that cost for years down the road. 

I really appreciate the help as we begin to navigate these waters!

I drink a gallon of spring water daily. 

Ask me how I know this....2) the hardware at ikea for cabinets (drawer pulls, etc) is not the best, and needs some patience and tweaking, but can give you a really, really cool look for a lot less than custom.  3) if and when someone tears through the outer laminate (plastic) layer on them, water will destroy them in no time (think under-sink leak)

I just bought my first investment property and now my mouth is watering for more.

Also find out if this is on city water and sewer system. 

Echoing some of the earlier posters I do not see how you could acheive this rehab for $25k, but again this is just from seeing the pictures and knowing what goes into fire/water damaged properties that I have worked on in the past.  

Recent squatter stole electric and water from neighbor - cops threw squatter out last week.

Sort of in uncharted waters.

I am having a difficult time navigating these waters as I do not want her to be taken advantage and I know that this continues to be a major issue especially in Los Angeles county (where we both live).