Larger roof, more expensive fixtures, higher labour costs in more expensive markets.Keep in mind that everything about costs and income are extremely rough guestimates at the very best based primarily on industry data gathered over decades involving millions of investment properties. 

The seller could be saying 'it's livable' but the 'fully redone' might just be cosmetic touches, new paint, new fixtures, etc.

When the dewinterizing company went to turn on the water, almost all the plumbing fixtures leaked and they couldn’t leave the water on for our inspection without fixing some things / installing new shut off valves.If your sow is $120,000, aren’t you assuming you’re redoing plumbing and electric from scratch?

I added a screen around the wood burning stove, a Keurig, and made a little coffe station with K-cups, sugar, creamers, etc.   

Haven't found the deal on light fixtures or ceiling fans I got last year...Peter

Purchased a multiunit - 3bd/1ba & 1bd/baCost: $490,000Down payment: $200,000Renovation Budget: $70,000Mortgage: $2100/month - 30 yr fixed @ 4%Expenses: $190/Month (Utilities, upkeep, and administration) Rental Income: $4000/month ($2400 3bd/1ba & $1600 1bd/ba)Profit: $1600-$1710 a month depending on utility costsTo keep costs down my wife and I did as much work as we could, such as painting, installing kitchen cabinets, laminate flooring, light fixtures, etc.

While we're at it...the first episode of "Low Budget" featured BiggerPockets coffee cups but I don't see those in the store, either. 

- Light fixtures are outdated.

Also drive around your city and look for new builds, talk to the crews and contractors there ask them if they know anyone.. if you have a couple extra coffee's in the truck I'm sure they will take 5 minutes to have a cup and answer a couple questions.

Possibly using a professional third party vendor for the pre-inspection is a great idea, give a copy to the owner and tenantExcessive holes in walls Broken tiles or fixtures in the propertyPlumbing backupsRepainting where a tenant has repainted from the original colorTears, holes, stains or burn marks in carpetsMissing or damaged blindsBroken windows and window screensBroken doors and locksBroken or damaged appliancesExcessively DirtyPest control if you see Bugs and or fleasJunk or trash left behindPast Due rentFees incurred from fines from the association due to the tenants conduct or lack thereofWater damage to hardwood floorsMissing outlet coversRemotes for garage or gate if not returnedRekey of locks if tenants did not return the keysUnpaid utilities, as long as they were part of the lease agreementUndoing a tenant alterationThis is a sample of things that are usually considered to be normal wear-and-tear and should not be deducted from a security deposit:Slab or plumbing leakNormal rug wear.