Not sure if the lender is covering any costs or anything for you.

In a down market, it could be very hard to cover your expenses and then you have to wait years for appreciation.

All of their past turn overs were around 1500 - 1800 which the sec. deposits covered.

@Tony Roddenberry,Quick and dirty answer to your question.If you were able to take the roof off your dwelling structure, pick it up and turn it upside down, everything that falls out would be personal property (free standing appliances, furniture, area rugs, are examples) that could be depreciated over five years. 

Being a late 80's home, one thing to pay attention to... roofs and HVAC will be at the end of their useful life if noone ever replaced them.

Also when you are a principal to the transaction, your errors & omissions insurance will not cover you. 

And of course your area may be different in terms of cost and also some jobs don't require a full cosmetic renovation, but most of mine have.Then of course check the big ticket items like HVAC, roof, exterior siding/masonry repair, windows, interior sheetrock replacement, foundation and water heater and know approximately what it will cost to fix/replace each if warranted.  

Would an estoppel cover this? 

The roof is leaking in additIon room.

But a new roof, water heater or deck requires a permit.