That being said there are some people who hoard money like other people hoard personal items.

I started my real estate journey back in November 2016 so many completed items (mainly educational) are not listed. 

You should have a conversation with the inspector about the water heater and see if he agrees or not.There are water heaters now that can be used for heat and hot water at the same time.

There are a  lot of other items, but I hope this helps.I have seen accounts cost $1500 to $4000 per, depending on a lot of the above items and then some....You could also use the 2.5 of the gross.

I'm usually fairly conservative, especially for SFHs on these items.

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Oh, and actual lastly, I've seen some nice-looking modern container-to-habitable structure conversions, and I've seen some fugly ones.  

To give a little background on this property it was recently remodeled top to bottom and although it looks really nice and a lot of items are new the quality is of average building material. 

If you seriously doubt it, sit down and have a conversation with her.

Based on conversations it doesn't seem to matter whether it is a refi or heloc, for investment purposes they both require 70% LTV for the majority of vendors plus a 700+ credit score.