We always do essentially a full renovation so that we're not inheriting unknown deferred maintenance and also can create a home that someone wants to take care of long term.

But I certainly defer to more experienced investors if I am missing something.

Honestly, in residential construction we usually defer to the contractor on this stuff (even though we're the "pros").

This wat I confirm our initial Rehab needs, add to it, and determine any deferred repairs that need to be covered by CapEx. 

The seller is very interested in OF to defer the capital gains tax.

The 1031 exchange defers both gain and depreciation recapture. 

Thereis roughly 26k in the account.What would be the best vehicle to move this money to in which she would garnish the best tax advantages and help any proceeds we pay her to be tax free/deferred?

They have spent a portion of the funds they received which makes me believe they are no longer eligible to participate in the 1031 exchange and will have to pay taxes on the gains, are there any alternative options to defer taxation?

While I appreciate the tax deferment, I'm concerned about the following two points that I am hoping to get clearer answers to here. 

The big problem is that this expense is for deferred maintenance that the seller should have already taken care of.