Purchase price: $91,000 Cash invested: $15,000 Sale price: $137,000 Bought foreclosure (ranch) 3 bed 2 bathSelf financed - home equityPaint, carpet, new kitchen cabinets, new appliances, new fixtures, landscapeDid all work myself except carpet installationHeld it too long but was my first project and working full time What made you interested in investing in this type of deal?

Let's assume for simplicity sake that you find one of these average homes and are able to buy it in cash for $212,000 ($40k discount aint bad) and it only needs a fresh coat of paint and new carpets in the bedroom ~$7,500 worth of work.

It is because they haven't completed the work yet (i.e carpet install, final painting and cleaning). 

As for damages, I wouldn't worry too much about drywall, paint, or carpet.

If you meant carpet vs vinyl I'd go with carpet but only in the bedrooms, they don't get nearly as much traffic as other parts of the house.

The downstairs is 2bd 1ba, is currently empty and will require paint, carpet in 1 room, and a facelift in the kitchen.

As tenants come and go, you will need to replace things like carpet and paint but because this is your first place I wouldn't get too bogged down with thinking about every possible cost.

There was a water leak and it damaged some dry walls, carpets and closets. 

Need to replace the floors of a rental (removing the carpets and laminate that came with the house).

New paint and carpet.