I require them to professionally clean the carpet and tile and then if there are any additional smells I may have to paint some of the rooms which will come out of the security deposit.

So I can't buy carpet for $3000, furnace for $3000, appliances for $2500 and expense all those items.

Notice to quit is served for any violation (unregistered auto, messy yard, etc.) 

He covered the 60-day notice with one month's pay and deposit (which I hate) and also scheduled a cleaner and carpet guy after moving out so no biggie there.A realtor/neighbor did mention that the NFL has some sort of program to cover the terms of the lease for its entirety (12-months). 

@Jordan Pothierhey...well my first house I bought upstate New York for 27k...it was a plumbing missing filthy mess...I finished the house and I'm at 40k total with purchase and its currently rented...I make 700 monthly on it cause I paid for it...if you are good at the trades...you can buy a house in PA or upstate that needs work...

Lastly, in the case of Condo 2 - How do i set a basis for the used appliances, fixtures, carpet, etc.  ?

For the unit that left, i hired a cleaning company for $150, laid down some carpet tile, and repainted. although the cabinetry and bathroom/kitchen was dated, in my area, it wouldn't have added much value. 

Again I am not saying that every section 8 is messy or does not take care of the place like higher income tenants but am referring to generalities.All my rents in the city of San Diego are all above the section 8 threshold and I only have one that if it were ever on the rental market would be close so I do not have to worry about denying section 8 in San Diego (at least until they are subsidizing 2 BR units at close to $3K). 

It would need a new coat of paint and a power wash for the carpets and I could move in.By the way, if that matters, I won the bid as a owner occupant.

Purchase price: $38,000 Cash invested: $35,000This was an extremely distressed property that had a caved in kitchen ceiling and some really worn out carpet.