It's been a long time question for me whether or not I should continue replacing the water heaters and ensuring proper insulation in the attic, or if I should relocate with a tankless water heater downstairs. 

If you 1031 a property you need to keep those original property records as those prove your basis for the replacement property. 

The owner told me she just replaced the floor, roof and heater/ac.

If it is a rental, I would replace the countertop as the paint won't last as long.

I took up the tile in my kitchen and want to replace it with new tile.

The basement required a lot more rehab than our projections so we had to cut back on certain elements including the driveway, which was due to be replaced but we ran short on funds towards the end.

They definitely all a challenge in their own way, replacing windows in sold blue stone walls is a treat, but the most frustrating issues are amateur rehab/repairs/maintenance over the many years that will haunt you.

@Jay HinrichsI believe I have only purchased a few thru them and all but 1 was during the time they sold some aged HUD inventorySince most of their current inventory is Trustee sales, I can't imagine many of those going forward right now nor how they can replace those restrictions on a Trustee sale 

So if the tenant has been there for 14 years and carpet needs to be replaced....

It sounds like you don't have a plan in place or a policy in writing, so you should probably just refund their deposit and try to find a replacement tenant as quickly as possible.In the future, you may want to consider a termination clause.