Updates include newer plumbing in basement, roof 5 years, updated electrical panels, half of the windows are newer, some replacement blinds and paint to both units!

My other bedroom has paint on the concrete.What is the recommended action now

As far as returns, are you willing to do any light rehab (carpets, paint) to get a discount to get those returns you're looking for? 

As well as, landscaping, most exterior repairs (gutters, new fences, paint, etc) are covered.

Your biggest challenge might be to find a qualified and honest contractor who won't do their best to rip you off. or somehow delay your project because then busy expending resources on bigger and more profitable jobs this while already holding on to the initial payment you gave them.

However if a flood ripped through your area due to rains and it flooded your basement she wants you to be responsible but what does that mean? 

I always have the carpets professionally cleaned, bathrooms and kitchen cleaned, and walls touched up or painted anyway without charging it back to the tenant at move out but you want to start with things in decent condition.

I painted and put in a backsplash in the kitchen, thats it.

I plan on doing the interior/exterior paint, flooring, trim and other minor fixes myself.

I've generally waited until current tenant moves out before advertising and move quickly to make any necessary repairs and painting so that I don't lose out on an entire months rent.