Before refinancing, I think I have decided to complete some of the remaining rehab items (new roof, replace linoleum with tile, replace formica countertops with stone - probably quartz. 

Have the tenant carry Renter's Insurance with Landlord As Additionally Insured coverage.  

I could rent out this house when not there but mostly this would be a consumption item.

If it isn't a health or safety issue I would say sorry but we can not install such an item on our windows.  

Our E&O insurance covers our gross receipts, which is adjusted for additional invoiced items, but still it adds something to our costs.

But again, as a non-active participant, you will have to carry these PALs forward and offset them against future passive income and not your ordinary income.

I am pulling off a deal right now that I have asked for the seller to carry back a partial loan which will make that deal work.

You can do a hybrid where they get conventional financing for part of the price (probably the current loan amount, if any) and you "carry paper"(ie take a trust deed/note) for the remainder. 

If they were in there for a year and the blinds were new, charge them for new ones.for the other items, clearly they didn't take care of the place. 

We negotiated owner carry for 3 years at 2% with 40,000.