Now the dog has chewed up the baseboards and window seals throughout the house and damaged the carpet.

I had an apartment that we couldn't rent even though the carpet, pad were replaced and the floor was sealed.

Good bones, but hadn't been updated since the 60's... it even had carpet in the kitchen!

Try and make it durable for tenants by getting rid of carpet, having fenced yards because people love their pets and will pay extra to have them.This could be as good or better than the military pension if you were to serve 20 years.I didn't start amassing my rental portfolio till I after I retired from the military.

So new roof totally lead free meaning new door frames etc new kitchen two new bathrooms and sheet rocked the whole house redid or carpeted every inch of floor.

It's like you're saying but a bit more complicated.True, there are components of the property that depreciate over a faster life5-year = Personal property (furniture, fixtures, carpeting, appliances, etc.)15 year + Land improvements (landscaping, pavement, fencing, etc.)BUT, according to the IRS it should be done through a quality engineering based study, otherwise known as cost segregation. 

I would put in lower mid grade durable materials, no carpet, finish the hardwood. 

I also put in the contract that I would not try to renegotiate over minor issues such as carpet replacement or cosmetic issues.

If it needs carpet, paint, and a new bathroom that is a simple value add opportunity. 

We add half of the roof, new fence , new carpet , new paint in and out .