And the green carpet is the dining room, which I assume then opens into the living room to the left of the wall in pic 3?

Exterior Gutters/Soffit/Fascia - Clean Gutters - Repair damaged columns on porch - Remove decorative wood work above columns - Remove Shutters Siding - Remove and replace damaged siding to match existing Exterior Paint - Prep all exterior areas for paint - Paint entire exterior (except brick), all siding, trim, and doors in 3 color paint scheme Interior Demo - Removal of damaged sheetrock and insulation - Removal of all light fixtures, fans - Removal of all tile in kitchen - Removal of existing countertops - Removal of sinks/countertops and faucets (from both sink and tub) in both bathrooms - Removal of existing toilets - Removal of tile surrounding both bathtubs - **Dumpster to be provided by homeowner Sheetrock - Patch sheetrock on walls and ceiling, including garage - Sheetrock over skylights - Remove all popcorn texture on ceiling - Texture to match walls and ceiling Paint - Prep and paint all walls and ceilings - Prep and paint all trim and doors Electrical - Install 4 recessed can lights with white trim in kitchen, cover fan block - Install 5 fans in living room, dining room, and 3 bedrooms (**fans provided by homeowner) - Install light fixtures in entry, hallway, bathrooms, closets (**provided by homeowner) Plumbing - Connect and install sink and bathtub faucets in each bathroom (4 total) - **Faucets to be provided by homeowner - Tile 2 bathtub surrounds, to include appropriate backing material - **Tile to be provided by homeowner Flooring - Install tile in kitchen and 2 bathrooms - Install laminate/vinyl wood plank flooring everywhere else - **Tile and laminate provided by homeowner Cabinetry/Countertops - Repair and Refinish existing kitchen and bath cabinets - Install new hardware provided by homeowner - Install 2 new white cultured marble sinks in bathroom - Install new laminate countertops in kitchen Air Conditioning -Inspect and perform maintenance on interior unit -Install new exterior unit (suggest size in estimate) Insulation -Install new batt insulation above kitchen where skylights were -Replace any exposed, water damaged insulation **All Labor and Materials to be provided by contractor, unless otherwise noted

She is very worried as they have a "new refrigerator and dining room set which she thinks is worth $$ but actually isn't.

For example, the dining room table would be a rustic wood with white or black chairs or maybe the table across from it.

This place is laid out more for a group of friends who all want to have there own shower and kitchen but hangout in the first floors living and dining room area. 

My only thought is that it's either:1) The 1 bathroom effect2) The current owner is an old man who is tired of landlording, hence why he's selling and he just hasnt kept up with market rents.Question is for owners of student rentals:  I know that the name of the game in student rentals is to get as many bedrooms as possible into a space, even at the expense of dining rooms or additional living space. 

Market: Portsmouth, VA The good:Refinished hardwood floors that are lovelyNice looking neighborhood and streetBig living / dining / kitchen / front sitting porchThe bad: Duplex that rents for max $800 each unit, mortgage is $1800 (2 units that are 2/1), tends to attract young navy couples who move away in a yearBottom unit has been empty since SeptemberI live out of stateThey just put expensive tolls in for the tunnelsRanked some of the worst schools in the USUpstairs has a failing A/CDownstairs has no central air, and a gas boiler heater on it's last legsSmall bedrooms with tiny closetsThe garage looks like a murder shack with doors hanging offCeiling in downstairs bath has a bit of water damage that is uglyMy thoughts:I'm going to try to see if I can refinance it and roll a bunch of these expensive repairs into it (new A/C for both units, fix garage up, etc). 

Awesome woodwork, nice open main floor dining room and well taken care of.

The Home has the following:First Floor and Finished Basement:(Owners Area)First Floor: 2 Bedrooms, 1 Bath, Office, Kitchen, Living Room, Dining Room, Enclosed Porch Finished Basement: Full Bathroom, Laundry Area, Living/Recreational Area, Tons of Closets/Storage, Mechanicals RoomBasement In-Law: (Tenant)Separate Entrance, 2nd Shared door with Owners finished basement, Kitchen, Bathroom, Living Area/Bedroom, Closet SpaceSecond Floor: (Tenant)Shared Side Entrance with 1st floor owner, 2 Bedrooms, 1 Bath, Eat-in Kitchen, Living RoomMy issue is this:Currently the owner rents out the 2nd Floor and also rents the In-Law suite to a "relative".

Scott's rehab analysis spreadsheet:http://www.biggerpockets.com/files/user/JasonScott...I'm sure this isn't the most elegant solution, but it worked for me.