@Jordan Moorhead If I refinance my thought is that I’d be replacing my old mortgage with a brand new one, starting the loan over.

Having the replacement she finds sign a new 1 year lease?

Even if you can, I will remind you that you need a replacement like-kind asset named within 45 days, and closed within 180.  

Apart from painting, replacing toilets, etc (and also addressing mold issues), the general contractor is also adding a wall to make the property a 3/2 again (prior owner took down a wall to make it a 2/2). 

Think along the lines of what is the most expensive to replace? 

Generally, set aside 5k as reserves for each investment property in the event something needs to be fixed/replaced. 

As an example, we had a fridge go bad at one property and the warranty company sent a tech out 15 times before finally replacing it.

@Michael Colello, there is no replacing on site inspection.  

We had to take out a wall, replace all paneling with sheet rock, re shingle the roof, and put in new flooring.

Naturally to cover themselves, everything even slightly askew is marked as "should be looked at by a professional" on up to "should be repaired/replaced".