If a house is in good shape, and the owner wants to maximize the sale price, they will.You get the 20%+ from finding distressed properties: maybe the house is damaged and the owner can't pay to fix it and a bank won't lend a mortgage on it.

Will do more damage then good.Use logic, understand conversion and build your site based on that.

Needs to be gutted, needs new roof, new hvac, new windows, new drywall, fix water damage throughout, rebuild an addition, add a garage, add a 2nd bathroom, new flooring, new kitchen, new appliances, paint, landscaping, redo driveway, redo layout (used to be a triplex but is now sfh), remediate sinkhole, replace asbestos shingles with siding, upgrade electric from fuse box, replace cast iron pipes throughout, put in a pool. 

Any repairs needed due to damage/misuse? 

Keep the deposit for damages, notify her in writing of abandonment, change the locks, and list the property for lease right away. 

Are there any insurance companies local that will offer “loss of rent” along with the coverage in case I could not have tenants paying me to an unforeseen event like a fire or water damage?

The security deposit must be returned to tenant after their tenure unless the property has damaged equivalent to the security deposit. 

After renting it for a couple of years and a tenant who did a lot of drywall damage, I decided to renovate the home and change the layout to a more favorable layout which was more modern and usable.What was the outcome?

But for all of you,  ALL of you, asking such questions, you are not ready yet... and it has nothing to do with watching more podcasts or following more smelly YouTube influencers.

Worst case scenario rehab costs is hard to account for since a structural damage can warrant for a demolition.