I've seen a lot of Allstate rental properties with ACV or market value coverage rather than Replacement cost and other tricks to reduce coverage levels.  

The property is a rehab and in need of new everything so i couldn't get a mortgage. 

Rising insurance costs are probably the number one driver right now of our overall expenses.

If it’s a safety issue, I’ll of course make sure the premises are as safe as they were before any required maintenance was done, but she is now suggesting that if I don’t reimburse her for those specific anchors, I am violating fair housing laws for familial status and/or tenants rights regarding not incurring costs for required repairs.

In that environment buying in the hood becomes very tempting, but that little bit of cash flow comes with a huge cost in headaches, the probability of property damage (things like a charcoal grill in the living room) and long term you might just be treading water.Average net cash flow is probably around $200 per door after you have stabilized the property, so you need a few units before it amounts to something.

Your ONLY cost in a rental is the cash you come up with. 

I'm researching some Baltimore properties that have been rehabbed and permits pulled.

If it's beyond normal, do I just charge what it costs to fix it or do I have to discount the cost for "normal wear and tear"?

She called it a cash offer, but included a letter from her hard money or private lender (same thing, really) stating the lender is good to go with the deal, the lender has plenty of liquid cash, the buyer has his 20% down payment and cash for closing costs, and there is no financing contingency.3.

If you sold the quad there are costs involved, and then you have to find somewhere else to live.