Paint+rental grade Carpet for a 2200 sq ft 2 story house should come to around $7K here right? 

Note:  that does not mean up to a modern decorating standard so paneling for walls is ok, orange shag carpet is ok, just not holes in the walls or floors.

I am debating between vinyl planking and carpet.

I had two separate clogs in the plumbing the carpet was filthy and the place needed completely repainted .

-High quality bathroom paint with mold inhibitors -carpet tile or LVT (luxury vinyl tile) with releasable glues so that a single tile can be replaced easily.

I would rather find a foreclosure or auction property that's in reasonable shape at a great price and near ready to go with what landlords called paint and carpet only needed.My first two properties were auction. 63k appraised for over 80k (was on markets at 119k originally.

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.