So why would you expect the tenants to leave the property clean and in good condition when they leave?

Person renting from you will likely take care of small repairs (add this to your agreement).The house is professionally cleaned after each stayIf the house does really well as a STR, you could do it your self at the end of the lease.

I grew up in a city named Waukesha, which literally means "clean water".

The project list includes replacing the kitchen counter-top, repaint kitchen cabinets and a bathroom refresh (i.e. replace the vanity, mirror, lighting, clean grout on wall tiles and new epoxy coating of the existing tub). 

It can happen  sure but I doubt it.2) a house that needs 10K in repairs is pretty much just a new paint job and a good cleaning.

I did look at the crime stats and the area is certainly not clean.

However, our quote included fixing a large water damage leak in the kitchen floor and wall, cleaning the carpet in the bedrooms since it's not bad just dirty, new vinyl plank in the common areas, light renovations on the bathrooms, new windows, new paint throughout, new hot water heater... more I can't even remember.

My idea was to make it a vanilla building, but update it and make it clean to attract tenant(s).

They don't keep it clean, the 4 houses around it have a tarp on the roof, there are 8 other houses on the street in better condition at 110K. 

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