However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow.

, it's still highly unlikely that an appraiser would have given value to this bathroom in any case, so we're not losing anything from an appraised value standpoint.Seller should be more than OK with it once you educate them on the fact that of all the offers they are evaluating, yours is the only one willing and able to execute a plan to close on-time, without delay, in spite of the flagrantly illegal and unpermitted bathroom.

You want not only qualified tenants (credit score, income, background checks, etc.) but quality tenants.

.: 500K is high and will exclude lots of companies from writing the renters policy. 

Assume you have cash currently earning 4.6% in high yield savings.

As others have stated, your fit & finish goals should be guided by whether you plan to:1) Rent: tenants don't always take care of a property, so you want to use lower-grade materials and workmanship.2) Flip: higher quality on workmanship and materials is usually required.Regardless, you always want to "Maintain to the Neighborhood".

Rates are high.

When you do things the right away all the time, you can't be pressured by a high maintenance tenant.

These updates made the property highly attractive to tenants.

Additionally, it's essential to exercise caution with certain hard money lenders, as some may eagerly finance questionable deals with the intention of foreclosing.