In this area another good Rule of Thumb (ROT) is $45/sqft for a heavy rehab(replace everything), $35/sqft for medium(between the two), and $25/sqft for light(paint and carpet

If it just needs new carpet and paint and those items are going to cost 7k, I would take the purchase price down by 20-25k. 

The previous owner glued green carpet on the back patio and the front walkway.

It was a 3 bedroom, 1.5 bath, 2300 sqft on 1.7 acres but it had closed off walls, carpet in the kitchen and bathroom, garage that had been converted to storage closets for the old hoarders that lived there and the list of quirky stuff goes on and on.After closing I was going thru paperwork and found that the previous people took out a $70k HELOC 5 yrs prior and put on a new roof/gutters, siding, water heater, furnace, new concrete driveway, extra insulation in the attic, and some foundation repairs. 

Paint Carpet + 1, $20-25 per sqft3.

All the carpet needs to be taken out but the laminate floors in the kitchen and bathrooms seem to be okay.  

I think an LLC is a great choice just because things can get messy when you work with an additional investor.

New carpet in bedrooms.

It makes things horribly messy if you ever need to evict. 

It was really dated and need some love, there was a water stain on the ceiling which scared people away, it need carpet, paint, bathrooms and kitchen were dated but nothing major.