In any case, I didn't paint them white.

Steve R.Put some bondo on the holes, sand, paint and then raise the rent.Franklin

Its my understanding that things like paint and carpet are not normally something you can take out of a tenant's security deposit, but I've read some comments online that suggested if they require change/updating due to smoking in the unit it's acceptable to withhold the funds.I don't have any experience with returning security deposits so I figured I'd take to the forums for some advice.

I started out doing that, in partnership with two friends, a painting contractor and a plumbing contractor, and we owned 12 doors by the time we were 30.

Many of these homes were foreclosed on during the housing crisis.These investors, however, often put no money toward renovation, or for fixing lead paint problems.

Or paint a wall, begin hording, add a electric space heater or start growing pot...not long.I tell my tenants it is for their benefit and safety for me to inspect furnace filters, smoke alarms, CO2 alarms etc.I personal am more concerned about my property investment than the minor feelings of tenants.

If you were investing 45K and obtaining a mortgage for the balance of say a 60-90k range you could obtain a nice single family that may need major/minor cosmetic work, like painting, removing old carpet, yard sprucing.

HI BP, My partner is looking to purchase a home and the contract includes a risk assessment contingency shown here http://i.imgur.com/y6Inpo8.png  "Contract of sale is contingent upon risk assessment or inspection by purchaser for presence of lead based paint/and lead based paint hazards" along with a disclosure stating no knowledge of lead based paint. 

If you wanted to do paint and carpet beyond that, up to you, would be more.

Some tenants are tempted to use the basement bonus room as a bedroom (dry, painted concrete walls and floor); yet it does not have proper egress windows or a closet, so we let them know it is not to be used as a bedroom.