Needs flooring throughout, some sidewalk work, 4 windows, paint, kitchen, bathroom update, landscaping, and tlc.

I put in an offer of $165,000 and accepted the counter of $177,000.Since then, I have done several upgrades such as, all new kitchen, all new siding, new roof, remodeled basement, and new cedar fence in the back yard.

Tenant pays to replace broken window :)

Kitchens and baths provide the biggest return.  

Make sure you're standards/expectations are clear (i.e. don't make noise past 9pm, cleanup after using the kitchen, etc.) 

My capex budget includes roof 25 year life span, floors 10 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span, etc.

Once you've done so, you get it appraised, and it comes back with a value of $160K.You can immediately pull out 100% of the amount at which you purchased the property - yes, you get ALL $100K back.Let me give you a real-life example:An investor we work with in Arizona bought a distressed property (the kitchen had been completely torn out) for $111K. 

Also, interest rates have dropped to all time lows allowing an opportunistic window to lock in very attractive financing. 

I know that banks will not lend if the property is not "habitable" (e.g. electrical, plumbing, etc.) but will they not lend if there are certain items on the CO report that have not been fixed during a refinance (e.g. window needs to be replaced, interconnected smoke detectors, fire code items, etc.)?

Two of my three 1950's buildings have had to have complete electrical upgrades (service, meter socket, panels, circuits to kitchens).