I’ve gutted the house and painted two coats of kilz, the house still smells really bad.

Owner was living with their ill mother.. they have done work over the years (new roof, new AC, new floors, painted, etc), but I have reservations about the fact that they have owned it so long with no-one living in it.  

If your parents have been living there for 16 years, it probably has the same flooring, has not been painted and has minimal updates. 

@Tom Gimer Thanks Tom...in this case there are two many issues that me as the seller and my future buyer just don't understand....especially with owner financing and lead paint disclosures etc , etc.....but I will put as much in the offer as I can but it will still have wording in the offer that it is contingent on our lawyers  creating a formal sales contract in "x" amount of days....I know of no other way to do this since I lack the knowledge to cover all the bases.....but I will take your advice and get as much in there up front ...if there is a better way then please let me know

The seller could be saying 'it's livable' but the 'fully redone' might just be cosmetic touches, new paint, new fixtures, etc.

I have sprayed tubs with epoxy paint using my Porter Cable pancake - just remember to drain all the water out first and/or get a water trap. 

If they are as good as the picture you paint is there a reason they are not being offered to the open market?

OK, after looking at your post again my suggestion would be to buy a house in Terra Santa as close to the school your kids go to as possible- Wait for a foreclosure that needs paint and carpet, get an account at Home Depot to get an idea what you can do for a budget plus they have financing and a one year guarantee. 

Kitchen needs to be redone with new appliances and probably a new layout, carpets need to be replaced, walls need to be stripped of wall paper and painted. 

Adding all modern amenities, new flooring, paint, New lights, opened walls for an open feel, reconfigure the kitchen, installed a/c, dishwashers, laundry, etc.I am getting $1100 for my up unit and have a deposit collected for the down unit at $1000 a month.