I still have not had to replace the carpet after nearly 10 years and its a very light color.  

I have redone the landscaping, trimmed trees and bushes, upgraded the swamp coolers to HVAC dual-pack units, upgraded single pane aluminum windows to dual pane, and removed carpet in place of laminate flooring. 

Commingling funds/books can only cause issues, and it makes for messy accounting.

Hole in the walls, cracked wall, heavy odor in the carpet of pet urine, and etc.

That smell (and messy tenants) will scare away most buyers other than investors who are looking for a deal.  

The PM inspects and discovers the dogs tore up your carpet in three rooms ($2,000), scratched holes in a couple interior doors ($300), didn't take care of the lawn ($1,000), and didn't clean anything in the house ($500).You've saved $200 a month for nine months ($1,800) but your losses are $6,300.

If you’re not willing to lose all your money, go into massive debt, and end up with a terrible mess I would not pursue this massive project.

I truly dislike carpet in my rentals.

If a property was purchased, tenant leaves right away, and repairs/maintenance are done (painting, carpets, etc)...can this be deducted as a repair vs improvement?

I am very grateful for a fantastic loan officer and buyers broker that really aided in getting this messy deal to close.