This led to my wife and I taking on the demo and hiring out the relocation of some plumbing and the installation of new tile.

After going through all the replies to this post, it seems to be a recurring pattern that people start here to achieve financial independence only to learn that RE investing offers such a plethora of ways to make a living that can appeal to all types of personalities (introverted, extroverted, narcissistic, obsessive-compulsive *haha) and in the end they find they would prefer to continue down the RE path.I wouldn't say so much that people here on BP get 'stuck in the cycle' as much as people here on BP end up discovering something about RE that they are truly passionate about - it's a beautiful thing! 

Out of the portfolio of homes we manage and having done this for decades now I can tell you everyone has their own schedule/pattern. 

You can be looking at 2$ porcelain tiles or 10$ Spanish tiles.

Can try a smart thermostat so it learns the schedule/patterns and then eventually will help save costs. 

The unit needs all new flooring/carpet,Sheetrock (walls/ceiling) , tile, base boards, paint, etc.

I did my first rehab at 50 years old and pulled carpet, replaced subfloor, patched drywall, painted, laid tile and laminate flooring, repaired crawl insulation, landscaped, cleaned and rented etc.  12 years later, rental property cash flows life and I can afford to pay others to do repairs; but the experience gained was invaluable. 

Will definitely pay attention and look for trends and patterns in my market.

Install a nice vinyl tile product.

If you want to pay the least amount in income tax, your best bet is either (1) tons of self-education or (2) start a long-term relationship with a tax advisor who has experience with fact patterns like yours.We could spend all day speculating about why your friend said he paid a lot in taxes (perhaps he really didn't but was just making conversation).