After 5 years you probably have a full repaint, carpeting, etc. on your hands.

So I may go months without any repairs, but then all of a sudden a paint job and new carpet will take that average up.On the CapEx front, I listed out the major components and expected lifetimes and came up with my estimate. 

The previous owner had them all covered up with carpet:

Carpet (stairs and 2nd floor, ~500 sqft) is pretty beaten up and although may survive 1-2 tenants may no be worth the expense to deep clean it.

Carpet (stairs and 2nd floor, ~500 sqft) is pretty beaten up and although may survive 1-2 tenants may no be worth the expense to deep clean it.

Carpet (stairs and 2nd floor, ~500 sqft) is pretty beaten up and although may survive 1-2 tenants may no be worth the expense to deep clean it.Would you recommend carpet, laminate or vinyl plank in our market?

One thing to note is that if a tenant has been there for 2 year and does vacate you probably have a full-repair vs. touch-up, who knows what the real condition of the carpet is, etc.

1) If the carpet's already old enough to need replacement within the next year, would you deduct carpet damages from a tenant's deposit?

Rehab includes paint (internal and external), new floors (wood composite, not expensive and carpet), bathroom upgrade (counter tops, fixtures), kitchen upgrade (cabinet paint, fixtures, back splash).

If it's a flip I would evict the current tenants and then have the whole home fixed up some and spray painted white and carpeted.