With new bathroom, widening one bathroom door, upgrading a toilet in master, granite on kitchen island (had ugly tile), hardwood flooring, upgrading lighting in dining and kitchen to can LED lights and paint, we spent about $19K in upgrades.

When we inspected the property before purchase, the toilet was leaking around the flange ... and apparently had been like that for months.  

Stained ceilings are often a tell-tale sign of leakageThe interior walls of the property must not have chipped or peeling paintPlumbing and Sanitation The property must have a fixed water basin, flushing toilet and shower/bath tubThere must be no plumbing or water leaksThere has to be hot and cold running water in both the kitchen and bathroom The bathroom must have either a window or exhaust fanThe water heater must have a discharge tube that drains to a floor pan, outside, sink, or other appropriate place. 

Have all the paper work for this ready when you have them sign the notice above.Another option, since they obviously have problems managing their money, offer them a payday payment plant.

I have a clause in my lease that states that negligence on the part of the tenant that causes damage to an appliance (or the toilet/sink/shower), is their responsibility.

Highly doubt Tile would make the floor bow unless the floor is made of wet paper towels.

Imagine my surprise when a toilet in the unit of one of our Section 8 units almost fell through the floor because of a leak that had gone undetected for years.

I am mainly concerned about the strict separation between me and the IRA, and figured I should avoid having a paper trail with my personal name on an offer that eventually is owned by the IRA.I didn't submit the offer today, and will hopefully be able to do so tomorrow after consulting with the custodian.

Sale from me to LLC for current market value (I don't have the capitalization depth to fund the LLC first, then show a paper money trail)? 

we had a new tenant move in and immediately start having toilet clog problems.