The sellers and the nuyers always try to dangle a carrot in my face by telling me that the inspection is not a waste of my time because they seriously intend to have my company do any necessary repairs.

There is a price premium for having a backyard, not sharing walls or even allowing pets that just can’t be factored in with that site. 

If you're new to REI my advice is don't waste your money converting a SFH into a duplex.

So why would you waste your time doing this before the city will? 

Flooring, light fixtures, vanity, new tub/shower surround, counter tops, paint, painted cabinets, tore down old wall paper. etc.Estimated $5k for cosmetic updates all done, came out to ~$5,500.

Unless your job is changing or the family is moving to the west coast in the next 5 years I wouldn't waste the time or money. 

If you could make tons of money wholesaling why would you bother wasting your time teaching your competitors to do it for a couple hundred bucks? 

I hired a professional company to clean all wall and ceilings.

Im sure it works but it is an eye sore and I think a waste of time to install/remove.

In the midwest we have a ton of bowed basement walls and it actually usually is a pretty easy fix and warrantied if it is a block foundation.