If the inspector goes through tell them their rent will go up with the upgrades. 

Found it online, new construction, most negotiations were on upgrades.

The house doesn't have any fancy finishes or upgrades but it's in a condition I can be proud of offering to tenants.

It had an itemized list of upgrades and the cost of them.

I don’t love the house and I wouldn’t mind selling but it would require most of the equity as a down payment on the next place (since we would want to upgrade). 

Maybe flip to an investment in 8 years when I upgrade to a SFH.

Plus if you're upgrading the property you get rid of likely appreciated pretty well too...I don't say this to discourage you, rather level set and point out having money or access to money doesn't give you an advantage right now.

-Roof-Windows-Siding/exterior-Electrical (not really a wear-and-tear item, but a good inspection will tell you what you're working with on the home and whether it needs to be upgraded.) 

I don't want to sound threatening but I do want them to pay for me to move to a different unit and at this point why not even an upgrade because I've been paying rent for a place that I can hardly even sleep at.

I can see the carpeting needs to be replaced and the kitchen/bathroom could be upgraded but I like the idea that I won’t have to do that until the tenant moves out at a later date.