Each condo is $27k and three of them are rented at $1150/month. 7 of the units needs cosmetic upgrades like carpet, paint and clean up.

Purely guesswork but based on the sq footage of each house your looking at $10k in prime & paint, estimate another $1k for light drywall repairs and assume you have 3000 sf in carpet roughly another $9k in carpet & pad. basically $20k for paint & carpet alone then factor in new faucets, p-traps and toilet seats another $3k, minor carpentry another $3-$5k, lighting maybe $2k.

Its carpeted, drywalled, electric, but no heat / AC.

I wouldn't be concerned as they want a house there, if you had one pretty much done and didn't have the carpet in yet, I doubt they would be pulling the  deal back lacking an occupancy permit, I'm  sure they would be reasonable. 

Everyone that came thru to look could not understand they were getting new carpet, paint and everything fixed.

If we purchase this home, the next time that it is vacant, we would plan on investing about $3,000 - $4,000 for new carpet, paint, etc...  

If it's just paint and carpet, it's hard for the appraiser to justify a large value increase.

Just wanted to give an update, Tenant refused the relocation fee but agreed to a rental increase to $900 a month for some minimal improvements (washing carpet). 

We cleaned, painted, remodeled bath rooms, new window coverings, new light fixtures, ripped up carpet and replaced with Allure.  

This month I have scheduled appointments to replace carpet, water heater, add a gas meter.