I'm thinking I could put a door on it and have a third bedroom, then move the existing counters etc out to the large living space for an open living/dining room.

Well, we stayed in the dorms a week or two (it was ok, but the kids were quite a bit younger, so immature), then, when we were finally able to get the dorm manager's signature for something, he saw our ranks and kicked us off base (no more free food at the dining halls or free latte's at the hospital coffee shop!).  

Garage, kitchen, dining, living area on the 1st floor with 3 bedrooms and laundry on the 2nd floor. 2.

That area is the best location in SCV for commuting to LA because of easy access to the 5 but shopping/dining options aren't great there so adding more options right there instead of having to drive 15-20 minutes into Valencia shopping area would be nice

Demo Total Bath and kitchen           Walls and ceilings           Windows, doors and trim         Floors where damaged         Rent dumpsters           Total labor 5580             Exterior Painting           Pressure wash house         Caulk where needed           Paint house           Total labor and estimated materials 4850           Foundation         Reinforce existing footings         Replace floor joists where needed and install new subfloors   Install new floor joists in addition to level with existing house   Total labor and estimated materials 8875           Plumbing           Replace pipes throughout       Run new pipes to accommodate new layout     Replace main water line         Total labor and materials       7500           Insulation             Install insulation in attic         Install insulation on walls       Total labor and materials 4580           Electrical           Update electrical throughout       Total labor and materials 7850           HVAC           Install a new HVAC system       Install new duct work       Total labor and materials       5890                                                                                             Interior work         Total Open up living room to dining room       Create 3 bedrooms and 3 baths         Install sheetrock on walls and ceilings       Mud, sand and prime walls and ceilings     Total labor and estimated materials     12785 Trim work           Install baseboards throughout         Install trim around windows and doors casing   Install new interior doors       Total labor and estimated materials     4850 Interior Painting Paint ceilings           Paint walls           Paint trim             Total labor and estimated materials 3580 Wood Floors Repair wood floors         Install new floors in addition       Sand and stain floors throughout     Total labor and materials       6750 Master Bath Build a concrete pam in shower         Install hardy boards on walls and floor       Install tile on floor and walls throughout       Install sink cabinets, toilet, and faucets       Install light fixtures and accessories, install glass shower door Total labor and estimated materials     7500 Guest bath         Install tub             Install hardy boards on walls and floor       Install tile on floor and walls         Install faucets, sink, and toilet         Install light fixtures and accessories     Total labor and estimated materials     5750                                                                                           Guest bath         Total Install tub             Install hardy boards on walls and floor       Install tile on floor and walls throughout       Install faucets, sink, and toilet         Install light fixtures and accessories     Total labor and estimated materials     5750 Kitchen           Install hardy boards on floor         Install tile on floor           Install cabinets           Install sink and faucet       Install door knobs         Install granite and backsplash       Total labor and estimated materials     7500 Roof Remove old shingles and repair plywood Install new shingles (25 year warranty).

with kitchen, dining room, sunroom, and  fenced patio.  

Suggestion for your situation:  Reach out to the seller - let him know why you are not able to settle as agreed, appeal to his sense of fairness.Take over his existing loan, subject to, give him the cash you have, ask him to finance the balance of his equity due on a short term loan (until you can get the loan you want),Offer the seller additional collateral and sweeten the deal by paying all settlement costOffer the seller a "hybrid" agreement - meaning -- offer him a percent of the profit when you sellOffer to pay his existing debt; credit cards or other loans dining the time you are working on getting the financing you desireAsk the seller to refinance and you take over the mortgage subject to or assumeOffer the seller more for the building payable on principal mortgage (that is a mortgage with NO interest) a direct reducing mortgage i.e.

SFR: 4/2 over 2067 sq. ft. with 10,000 sq. ft lot and pool Illegally added 3rd bathroom and kitchen added to dining space Repairs needed: -New windows-new paint interior and exterior- has small kitchen (could knock down wall between living and kitchen or between kitchen and hot water heater closet in garage)-complete rehab of two baths and kitchen- pool supposedly worked but not confirmed (was empty) - new fence in back- new hot water heater and furnace- new garage door needed- landscaping in big back yardFor US, the conservative estimate for repairs was $60,000 - $70,000. 

Upstairs are 2 bedrooms, 1 full bathroom, the kitchen/dining area and a living room.

That would put undesirables on notice not to rent from you, and reassure the desirables that it is safe for families.Price your STR as a "suite" with a bedroom and a sofa bed in the family room for the kids, and a small dining table with chairs.