Simply replace the cheap carpet that was put in and move on. 

That way if he defaults you just simply evict and take the property back.  

I think wholesaling would be a great way for me to enter the real estate scene; a subject I'd love to become involved and invested in.Ive read that having a real estate license can be an advantage in wholesaling, as it gives you access to the MLS with the ability to comp properties.

Being a buy-hold investor, the midwest is a great place to invest because the barrier to enter is much lower than other parts of the US.

I would simply say no.

If you simply use a random $/SF rehab budget you will miss one of these houses roof costs.The 2 story house I would expect to pay around $4200-4500.

It's simply not possible to have a notary we "know" in every jurisdiction.

Would they simply apply the roughly 1/3 Debt to Income ratio regardless of the heloc facility one has in reserve? 

Simply create a "common expense" category, or several.

If you have language in your lease that allows for entry to complete necessary repairs, I would give them official notice to enter and finish the window install by personally accompanying the contractor.