Bonus : we were able to split the lot and still leave a very large back yard.

As a bonus, I personally know more than enough contractors that can assist in getting the property ready.  

I'm considering trying some different things out in a couple rooms, possibly a bonus room, etc. 

But if you give them a deadline and a bonus the outcome is different.   

Also remember you can also depreciate the cost of the system as well for added tax bonus (accelerated deprecation).

Re laundry money, i never include this in my calculation - i simply look at it as bonus income. your vacancy at 3% sounds low, again not knowing the location its hard to sell. 5% would be my lower estimate in high demand location and proven 100% occupancy in the last 2-3 years.Repairs and maintenance, unless the property was recently renovated top to bottom or you would renew the large items like roofs, HVAC, water heaters etc 5% and 4$ is tight. 

Given his generous terms, I'm considering countering at $245k. 

The added bonus, the books are very easy books to read.

Be generous, its not worth a hassle. 

Nothing.If you are feeling generous you can drop them off  a blanket.