So you can still claim the $3000 under the routine maintenance safe harbor but you cannot elect SHST for that property, instead you need to classify every item of that remaining $4000 and test each item's effect on it's respective UOP. 

It needs about $10k in repairs, $4k for foundation work, $4k for a new roof and misc cosmetic items.  

Ask the underwriting/loan rep to tell or send you the item that caused the flag to trigger.  

Would you let her pay for the items, and install them on your dime? 

I use a local company here that takes care of me for giving them lots of repeat business, and all the items come with warranty.

@Barry Cohen The big ticket items are the painting and the carpet.  

I don't have to change 9 roofs and other capex items that come up over time.I would always have a higher quality asset than medium quality even if return in the near term is lower.

you probably need to perfect title before you can evict.. but each state is different talk to an attorney well versed in tax sale issues.cash for keys is always good lest you find your new purchase missing many items and they vandalise it before they leave.. which is very common when folks lose their homestead

@Dan Chandler I wouldn't take condos off your list but there are some due diligence items you should consider that are not necessarily part of a SFR due diligence list1.

First off, you should have gotten quotes for all the items BEFORE you closed escrow, why waste all that time!