If I can detect or someone complains that a business is being run I will give written notice to knock it off and hand deliver to the tenant so they fully understand what they need to do.

Between hidden framing issues, hidden electrical/plumbing issues, code compliance issues (smoke detectors, firewalls, etc), nice-to-haves (landscaping, etc), it's very easy to go 10% over a hard bid from a contractor.In the future, I'd recommend that if you budget is $160K, you try to negotiate a hard bid closer to $130K, and then -- as Rick suggested -- have a secret contingency budget of $30K.

My plan as of now is to just roll with what is already in motion.

For example you can not finance properties with health and safety issues for example no heat source, no flooring, broken windows, no stair railing, no smoke or CO2 detectors, pool with green water or empty, bars on windows that do not have safety latches and other things.Q.

(although we learned a lot in the process)Not taking a time off work to help my wife get the rental ready the day the tenant moved out.Not addressing tenant issues head-on but looking the other way.Not installing a water detector alarm to a known common problem.Including details of tenant responsibilities without an upfront process detailing what happens if they are not followed.Not getting involved with BP and REIA until late this year.(2014 will be much better!)

All my units need to be clean, warm, and secure, with smoke detectors, working appliances, windows that open and close, and hot water.

I took a quick look through my CA residential code book and could not find any code requirements for a closet, only requirements for a bedroom are smoke detector and egress window.

I know there are certain things I need to do before the tenant moves in (like smoke detectors, fire extinguisher, etc).

Did you have CO detectors and were they going off?

What about motion sensor lights?