But it needs a thorough good paint job, ripping out old carpet, putting new ones,  or scraping g hardwood floors etc.

Bought the described property for ~$75,000 (got ripped off). 

RIP) and while the contractor for the Home Warranty company is saying it needs to be replaced the tenant is pissed because it's been 4-5 days without air conditioning. 

We knew we needed foundation work, we weren't told all the flooring would need to be ripped out to make the repairs.

A word to fellow investors from both coasts- too many liars and blood suckers waiting for opportunity to rip you off.

The company tented off the section of house and then ripped up the flooring, tore out the drywall, etc.  

We ripped them out.

Secondly, if major work was done, e.g. adding a bathroom, and not properly permitted, it's not legal and the town could make you rip it out and start all over.

They certainly saw the rip in the screen, the holes in the walls during their inspection.Our lease has a clause to the effect that the tenant has inspected the property and is accepting it 'as is', EXCEPT for items that could not be observed during inspection, for example, water was off, so tenant could not see the faucet drip. 

He comes in the first week and tell us in order to bring the house up to code, all the paneling in the basement is going to have to get ripped off the walls and 2x4s along the exterior walls in the basement.