And 2 days later they text and said while they was cleaning the kitchen counter and turned the garbage disposal switched on she got shock.  

It is a 3/4 acre lot with utilities ready on site and the site with a little clean up would be ready to build on.

Problem #1- After the demo, we realize that all of the Electrical is a fire hazard and there are no lights in any of the bedrooms or living room...

Hey Christopher,I'm not an insurance broker, but usually they need the following for rental property:Year BuiltSquare FootageBeds/BathsRoof, HVAC, plumbing, and electrical system age (if you know it)Type of construction and exterior claddingBasement (finished or unfinished) and square footage valuesSome companies require picturesI hope this helps.

Water, Trash, common electrical? 

We spent a month cleaning the place up (this including getting the pool cleaned, replacing everything in both bathrooms, redoing the kitchen, painting and generally just making it liveable. 

Yes keeping your units clean and updated( particularly kitchens and baths) will help you collect the higher side of your market rates...but realistically these updates should be ongoing and not a prime rent increasing tool.

The annual inspections are good I think, as it gets the tenant cleaning up and keeping things proper in the unit.

I prefer class B properties which usually require clean deals. 

Electric baseboard heat and 1 wall AC unit per side.