You'll definitely want to have the unit vacant if you are tearing down any walls or sanding and applying a new coat of paint, but then again, that would be the case regardless of whether or not there is lead paint on the walls.How is your search going?

But after looking at the scenarios and the potential for similar profits given LTR monthly revenues without the excessive wear and tear of an STR (not to mention the challenges of finding reliable cleaners) this buyer elected to pursue LTR in Big Bear.

I wouldn't say its super lucrative but its a lot less work & in general I think you get a higher quality tenant who spends most of their time working, which is good for the wear & tear of your property. 

Can you document with before and after photos, bids from licensed contractors to return to original condition, the damage cannot be usual wear and tear, are you able to go to small claims in the subject property city?

Quote from @Oles Bober: The law says you can't charge them for ordinary wear-and-tear. 8-year-old paint is not something you would charge them for.

I want to choose a floor tile that is most durable and less likely to show wear and tear from water/mold/etc. 

@Amber Imasuen here is the menu you asked for:1) when I spec built in tear down areas (that sounds like what you got) I (and many other area builders)  would offer lot sellers an opportunity to use their lot as a trade on in buying one of my spec homes.  

I have in the past purchased numerous homes in Pahrump that have had foundation issues, mostly from banks, and sold them as tear downs.

- Are they tearing off the existing roof or going over it?

This is not due to increase wear & tear (many people say to expect this as many Sec8 tenants aren’t working and are home all day), but due to the annual inspection.