Whether you're gutting or just updating I would just go with inexpensive fixtures and materials.

@Dustin Verley  In addition to real estate notes I've also worked with these cash flows:Business Notes - no real estate as collateral just FFE  (furniture, fixtures & equipment) and goodwill.Mobile Home Only Notes - mobile home on rented lot so no real estateInvoices - buying accounts receivable at a discount.Cell Tower LeasesLand LeasesCasino or Jackpot payoutsLottery paymentsStructured SettlementsAnnuitiesI haven't personally worked with Auto notes but know several investors doing well in that arena as well.The basic concept with all of these options is similar (purchase a future cash flow at a discount using time value of money calculations or IRR) but the documentation and due diligence will differ.

@Matthew Rembish, The bad news is that until 2018 he could have 1031d the land and building for other investment real estate and the FFE (furnishings fixtures, and equipment) for other business equipment. 

Anyone in the area willing to meet for a cup of coffee and discuss real estate?

Other minor cosmetic work may include new light fixtures, switches, and outlet covers, carpeting removal and shiny hardwood floors.

That’s my cup of tea. :)But... there are a lot of people here who do very well for themselves in cheaper neighborhoods.... not me.

Some challenges we have faced are bringing electrical up to code (if you change so much as an outlet or light fixture, it's a requirement in my state) and house settling that makes all flooring except for carpet a challenge (contractors will want to put in all new sub-floor or they can't promise their work will not be without many issues).Hopefully, your foundation is good. 

Six other small things like working smoke detectors, and replace windows here and there2) 2009, $0.00Code 169017 - Repair or replace house drain to receive and convey discharges from plumbing fixtures to sewer.3) 2013, $0.00Code 169017 - Repair or replace house drain to receive and convey discharges from plumbing fixtures to sewer.

We use nice fixtures, antique furniture and Persian rugs everywhere.  

Using laminate (medium or high density) in kitchens, washrooms and laundry areas is always a risky undertaking.If the liquid is mopped-up promptly and you apply a dehumidifier and/or heat and ventilation you may be able to dry the laminate sufficiently that is does not cup or buckle.