UGH.....got her to leave voluntarily basically just by starting eviction process....but mannnnn the mess they left me :-(Got the keys back Dec 1st10000's of dead fleas...bedbugs and spidersruined 800sqft of carpet....and patches of the hardwood underneathleft behind 20-30 boxes of junk and cupboards full of foodbedroom walls are so disgusting with bedbug and spider residue I have no idea how they were living therethey did leave me a fridge thats in nice shape though haLet the clean up begin !  

I had a carpet cleaning guy that came in and did an exceptional job.

The front house needs big ticket items done - there aren’t even any interior walls (roof, windows, a little foundational work, update electrical, carpets) but is in “good” condition otherwise.

I bought a similar home recently and found that the Kilz as well as ripping out the carpet and flooring eliminated 95% of the problem.

I've been renting a house for awhile.. years actually.. and it has every problem you can think of.. mostly rats and bugs because theres holes and cracks in the doors and places in carpet where mice or rats been getting in and out. then guy raised my rent so i could get pest control but only does it like every 10 months. just say i found something better but the real question is this if i give my landlord a 30 day notice (im not on a lease) but the place im trying to move to might not actually be ready for maybe a week or two after the 30 day notice so in that time ill be homeless if i decided to move out after the 30 days..

I have hardwood floors on the first level and have decided to replace the carpet upstairs with something more durable.  

I already know that your tax pro will say "no" to depreciating light bulbs and repainting in between tenants (& they will LOL at the notion of depreciating a $2.50 light bulb), but start the "fight" there so that when you're done "meeting in the middle" maybe the new carpets and new water heater get "depreciated" instead of being a "repair." 

Do the units have carpet, hardwood, or vinyl?

OK, after looking at your post again my suggestion would be to buy a house in Terra Santa as close to the school your kids go to as possible- Wait for a foreclosure that needs paint and carpet, get an account at Home Depot to get an idea what you can do for a budget plus they have financing and a one year guarantee. 

Kitchen needs to be redone with new appliances and probably a new layout, carpets need to be replaced, walls need to be stripped of wall paper and painted.