Alternatively you may decide not to address the capex but be prepared to deal with high frequency maintenance requests with duct tape repairs. 

Are there any city or lender required repairs that will require an immediate injection of capital?

I recommend establishing a reserve fund for major turnover expenses, capital repairs like a roof replacement, etc.

The LLC would essentially serve as a business checking account to collect rental payments from your roommates/tenants and potential write-offs for expenses such as property repairs/maintenance.

So thats kind of the standard operating procedures in those markets and nothing really sells for full list price..

A contractor may offer a 1-year warranty for general repairs and a 5-year warranty for structural components.Discuss any guarantees or warranties on work performed and materials used.

Also, the amount of damage was so expensive to repair that he simply could not afford to fix the more damaged units.

but, it's not going to be "profitable" for several years, depending on how you define profit.you'll have a down payment, then closing costs - which new investors always seem to be shocked by - then potentially some costs to get a property rent ready, then you'll pay a month's rent to get it listed and rented out, then you'll likely have some repairs after the tenant moves in.  

Hey Peter, thanks for the comment and the insight and you are absolutely correct about knowing what sells in your market, I see this happen with a lot of fix and flip projects that are just in the wrong areas, the investor gets the house for a good price however spends too much on repairs and adds a lot of luxury thinking that it will push the ARV significantly higher than the average in the area.

I'm thinking that repairing the plumbing leaks and getting the soil dried out could be a permanent solution.