I have not seen a $10,000 repair on $30,000 purchase end up being a success, unless  you are seeking high risk and high reward, I think you need to take high reward out of the equation, because you will find yourself exhausting money to replace tenants and complete on going maintenance.  

I began working with an architect and engineer.

So what finishes are you going to be comfortable with where you won't have to spend more money to replace if they get damaged. 

I am in the process of replacing four windows in my rentals.

Property managers are incentivized to say "that needs to be painted" and "the carpet needs to be replaces" ... because they are getting a % out of it each time.

The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

Once I have an idea I would determine the cost to replace and simply divide by the remaining life expectancy to give amount needed to save by year or month.  

The work order says the light needs to be replaced with a light that doesn't have an outlet.  

I work for a municipality, working with developers to develop their land, reviewing the engineering side of things.  

An Actual Cash Valuation will provide the replacement cost - depreciation and Replacement Cost Valuation will provide the Replacement Cost.