Their course is more affordable than Bosch & Seth's (though I do not discount the value both bring - and the respect they have in the industry).

The jadu would most likely have minimal value or be discounted since of it's owner occupied requirement and therefore, not having the same rights as a traditional 6-unit property.As to the lending part - I am not sure how lenders are going to look at this, since it does now fall under the commercial definition.As to your specific question: It might increase the property value.

If you cannot, reach the owner, you may be able to reach the lawyer representing the lender and offer to buy the debt (at a discount).

He could offer the seller (after an appropriate amount of time) a payoff of the note  at a discounted price (say $325k).  

I would like to know what all qualifies as completely clean here- Electrical wiring is normal and no unlicensed modifications - Structural inspection is also clean.Seller is ready to discount the price by ~20% from market plus the cost to repaint the whole house What are other questions to ask and things to consider in this scenario?

When buying a note at a discount (e.g. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures?

Flexibility is an important consideration.If you hear 7.5% DSCR rates, that probably has 1%-2% in discount points (up front closing costs to buy the rate down), a 4-5 year PPP, and it probably assumes a perfect rents/payment ratio. 

Or you can apply a discount rate to your total capex in accordance to when you forecast the expenses.

It requires revision of the stated principal of the loan, triggering specific rules known as OID - original issue discount.

There is a price discount, and your sales rep will inform you of "specials" on products you may be interested in from time to time.