Then you have three kitchens and at least 3 bathrooms, which kitchens will likely be 10k+ (nice finishes will likely be 20k+, each) and bathrooms are going to be 8k each.

Someone took the little basket that holds soap and shampoo and the sign on the back of the toilet and placed them waaay in the back of the bathroom cabinet.Someone removed the tiny little LED lights I have on this 8 foot tall fake ficus in the kids bunk room and put in on the deck.

Short backstory; I’m a licensed builder in MI and have been on my own for 1.5 years completing structural restorations, insurance claims (roofs, siding, floods, etc), and about 15 or so bathroom remodels.

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

Renovation PlanScope of Work:Convert 0.5 Bath to Full BathEstimated Cost: $7,500Details: Add shower or bathtub, update fixtures, ensure proper plumbing.Add Bedroom in BasementEstimated Cost: $15,000Details: Install egress window, insulate, add walls, flooring, and electrical work.Replace DeckEstimated Cost: $3,000Details: Replace existing 8'x10' deck with new one.General UpdatesEstimated Cost: $45,000Details: Update kitchen, bathrooms, flooring, paint, fixtures, and necessary repairs.Total Renovation Costs: $70,5004.

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?

Updates include new upstairs flooring, kitchen counters/sink, bathroom vanities/toilets, and fresh paint.

Full rehab-paint, flooring, granite countertops, added bathrooms What was the outcome?

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. 

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?