It looks better with a coat of paint.  

You avoid liability by asking tenants to sign an agreement that they accept the presence of lead paint.

Materials are not that expense (drywall, compound, paint, etc.), but labor may be. 

Unknown if lead paint.

I flip houses with hardly any rehab, maybe a slight facelift such as paint and I never hire contractors.

I no longer do yardwork or other monthly items that I can effectively pay someone else.I will say that turning a unit over take time, between cleaning, repairs, painting, etc, I spend about 5-15hrs on each unit.  

Other relevant aspects that need mention for repair evaluation - HVAC unit is inoperable (not listed in the listing, but known from previous owner), there are areas of permanent construction that need to be torn down due to no permits, carpet replacement, total bathroom overhaul, complete kitchen remodel, yard maintenance, inside / outside paint, stucco repair, electrical repair and other interior cosmetics and so forth.

He thinks it only needs an updated kitchen, bathroom, paint, & possibly carpet.He "says" he wants 115K, which he feels should give me enough spread to make a profit when "I fix & flip it".

Things I have come across that can lead to saving money, time, and headaches:-Smoke detectors with long-lasting battery-Low-pile and stain resistant carpet-Heavy-duty tile w/ lifetime guarantee -Long-lasting light fixtures and bulbs-High-gloss paint (easier to remove stains)I am curious to hear others weigh in on these practices and provide others.

But I've read a lot about making sure your lease complies with state laws and such and EPA lead paint restrictions and on and on... its all slightly overwhelming...