I have a friend who is eligible for a FHA loan, and interested in buying a light( only minor mostly cosmetic repairs, paint etc.) fixer upper to eventually rent out.

It won't look great but may hold together for another tenancy.Just cosmetic surface scratches may be tougher to fix.I actually do use area rugs for LVT--give them to new tenants for high traffic areas and bedrooms.

The Lenexa ones need mainly cosmetic, however, one of the units needs a new kitchen.  

In my eyes, it seems like A LOT of cosmetics is needed.  

The low asking price is attractive, but cosmetically i have nothing to improve it unless its a systems upgrade.

So, cosmetic items as well as items needed for inspection requirements.Moving towards a fully remote and semi-automated solution with a dedicated service agent for each project.

The homes in the close proximity area range from $60,000 - $400,000 There are 2(2bdrm/2bthrm) apts inside with needed cosmetic improvement.

If you do go the FHA house hack route, I'd recommend trying to find a prop that has good bones, and relatively new CAPEX items like roof, boiler, HVAC, flooring etc, but which has a lot of cosmetic issues.

I would say start with a "cosmetic fixer" that has good bones for all the major systems ... good roof, good structure, good electric, good plumbing, good heating ... however, all the cosmetic stuff is ugly, smelly, dirty, and dated. 

It has some issue mostly cosmetic with maybe something going on with heat pump although it did turn on.