I need your input on this...is it worth it, since I'd be loosing equity on loan origination fees??  

IMO, making a separate promissory note stands to confuse the situation more, creates something else to loose and does not really create any advantage to having all terms in one single agreement.  

Don't loose site of the reason you have ended up here.

If they have brick chimneys that are loose and crumbly, you might have to fix those, even if you don't want to make the fireplaces work; many people object to bricks falling on their head.I hope this helps!

Based on the info you provided, you might consider doing a lease-option where the lease component is very loose, allowing you to do whatever you want with the property and in return you pay the owner the amount needed to cover mortgage/taxes and you are responsible for everything else.  

If this is the extent of the damage, and there is no underlying/ongoing problem, then cutting out the loose material and spackling should be sufficient (and painted of course).

Frankly, most hot deals from MLS I loose to competition.

When you sell it, you will have closing costs plus likely realtor fees of 6%, so you will likely loose money.  

I briefly looked at this and I would have been loosing over 40% of the retirement account value.

Turn Key provides built in relationships but there are draw backs to that approach( you will typically loose a lot of your equity capture as that becomes the providers profit and not your wealth).