In that room we had to replace the drywall anyway so this approach was about a wash in cost.

Hi,I'm looking to repair or replace a driveway and some sidewalk blocks in University Heights. 

My wife and I have discussed how we can start investing in real estate to replace her income (short-term goal).

The carpet and walls need replacing and painting.

Here are the two analyses: Initial Investment Purchase Price $89,000.00 Closing Costs $2,225.00 Renovation Costs(allegedly turn key) $3,000.00 Total Investment Costs $94,225.00 Financing Costs Down Payment (%) 20.00% Down Payment ($) $17,800.00 Mortgage Balance $71,200.00 Annual Interest Rate 4.00% Loan Term (months) 360 Total Invested Capital $23,025.00 Fixed Monthly Operating Expenses P&I $339.92 Financing Charges $0.00 Administration Fees $12.50 Property Taxes $197.08 Homeowners Insurance $111.86 HOA Fees $0.00 Fixed Monthly Total Costs $661.36 Variable Monthly Operating Expenses Property Management $157.50 Advertisements/Referrals $65.63 Vacancy & Collection Losses $131.25 Capital Expenditures Replacement Fund $50.00 General Maintenance Fund $50.00 Temporary Utilities $10.00 Pest Control (Optional) $0.00 Lawn Care (Optional) $0.00 Total Variable Expenses $464.38 Total Monthly Expenses $1,125.74 Annual Operating Expenses $13,508.86 Operating Income Monthly Market Rent $1,575.00 Annual Gross Revenue $18,900.00 Monthly Profit (or Loss) $449.26 Annual Net Profit (or Loss) $5,391.14I present to you such a thorough analysis in the attempt to make sure I'm not making any glaring mistakes!

Cash flowed well and the area rents decently, but I passed on it because many of the units weren't owned by the mobile home park it was more renting out the lot so you'd want to factor in the cost to replace a unit or find someone to move onto the lot itself.  

Would it cover just the removal of the carpet or the entire replacement/installation of the new floors?

When a policy is based on Replacement Cost (RC), the companies generally will not pay the Replacement cost until the work is completed. 

I see a drop down tile or two that needs to be replaced due to a possible leak that needs to be fixed.

And what if a section of flooring, or a countertop, or some other item in the house just needs a good clean instead of needing to be replaced?