I also like the idea your sister did with reducing inheritance by a value equal to the property. 

It's unlikely you will mitigate W-2 earnings as passive income (rental activity) won't reduce your w-2 income tax liability.As for replacing the AC. 

Paying off the properties would reduce long-term risk.  

You want to be better than them, but not so much better that people start wondering what the catch is.Edit: also consider what's underneath it, you may want carpet purely to reduce noise below.

Roll up my sleeves and do a little slave labor to show the contractor how serious deadlines are to me and also reduce a little costs.

My seller would rather not repair the floors and have the insurance check reduce her principle at closing. 

People are being forced to pay a greater percentage of their income towards rent which reduces their ability to pay for other necessities and raise capital for their own home.

It seems that it could reduce many hours of research needing to be done by a prospective buyer.

Aside from the kitchen and bath, I can do some of the rehab myself to reduce costs. 

But all their penny pinching did not help them at all when it came to preparing for the impending RMDs, and now they are looking for ways to reduce their tax burden at the 11th hour.