FHA inspections typically result in "nippler" negotiations where every little item that needs addressed nibbles away at the net proceeds of the sale.

I've replaced these items from supplyhouse.com, & honestly you're probably better off replacing these items from the get-go & it'll be (relatively) problem free.... especially if you run them a 2-line thermostat to make things easy for the tenants.

I've been able to secure contacts that will assist in future investments (inspector, contractor, substantial discounting for rehab necessary items).Is my thinking above logical (given cousin is agreeable)?

I do not have any rental properties yet but anytime I've checked into deducting these two items for our primary residence, I was always told you can't do that.  

The other items are visual only inspections and no additional inspections are done to find the source of the issueHUD will do no repairs nor provide any price reductions. 

It sounds like you have some tenants that will obey the request; however, just stay firm to the dates and items discussed.

Additionally, in the time I have lived here I have replaced almost all of the high ticket items.  

The house looks solid for 170K, however I am assuming you identified everything that needed to be fixed and the electric was the biggest item?

Assuming it needs, at the very least, paint and some fixtures, then the retail cost of those items will come off the $115k.

The two largest items being replacing some windows and reframing the roof of a pre-existing 400 sq. ft. back addition to the house.