The house need to replace roof, siding, and outside stair way have some damage.

According to the owner, the roof was replaced in 2009.

Per seller house needs new carpet, paint, landscaping, and tile replaced in one bathroom (15-20K?). 

However, I think I'd have to replace it for it to sell anyways, so its already a cost factored in whether I continue to rent it out or sell it. 

Any drawbacks to knocking down the garage and NOT replacing it for a rental duplex?

If you know your roof is old, consider replacing the entire thing. 

replace all outlet and switches and covers (inexpensive and looks great). 

Many of these former and would-be Austin residents have been replaced the tremendous influx of new residents, many of them drawn here by careers in the high-tech and creative sectors and comparatively lower cost of living.

Hi @Jennifer Bayhi Gennaro, You can structure the acquisition of the Replacement Property so that you (1) acquire in your individual names as 50/50 tenants in common and then contribute into your own LLC as long as it is considered to be a disregarded LLC. 

I've been paying for about 4 years and they've promised to repair/replace hvac, hot water heater, electrical outlets, pipes, sewer/water lines between the house and the street.