As a rental it may require $10K in upgrades and it can possibly be a lease/option deal, where you get paid twice!

For liability separation, I've broken up assets into a multitude of entities.

If the house can pass inspection, you can live there while you make cosmetic upgrades/improvements. 

Big capital overhaul, upgrading HVAC, water heaters, electrical, roof, etc..

Moral of the story is, it wasn't broken so I didn't need to fix it.

We did foundation repairs and some cosmetic upgrades but unfortunately we have not been able to sell as twice the buyers have said their inspectors noted issues.

But if I have to use my cash from the 1031 exchange to do some upgrading, it quickly eats into my c on c return!   

So for the first couple of years we are trying to upgrade it, but still keep in mind that this will be a rental. 

A friend of mine had broken glass bottles in his yard.

I was a painting contractor in another life, so while I can't say much about plumbing I can say that if you have a good and ethical contractor, he will tell you if and when the plumbing may need to be replaced or upgraded.