I’m less concerned about the small items, and I focus on where big costs surprises can come up (new sewer lines, breaker upgrades, galvanized piping, etc) so I can re-trade my offer appropriately.

If the non profit continues with the threat of litigation, threaten it with a counter lawsuit for filing a frivolous lawsuit.

Another area I willingly spend more on is counter tops.

I think assumptions are easy to make due to this being all text, but my mind is absolutely not made up which is why I am posting. i raised the concerns with my sponsors around the high IRR and fees and other points you all made and she countered with the air bnb component being the reason.

I put in granite counter tops, new kitchens, nice bathrooms and also gut the plumbing and electrical so the housing is in good condition. 

I was getting counter offer rates for 3.0% from different investors. 

Or perhaps most likely, the seller will counter your offer with a higher price or different “terms”.  

The main beam also has been cut to accommodate a drain pipe.

Keep in mind the foundation is not the only issue, when there is foundation issues there is usually other internal issues that go along with it, (wall separation, Possible broken pipes, floors etc) so give yourself plenty of wiggle room for repairs.

It's rough in the way that they have let their kids draw all over the walls and the kitchen counters are from the 80's.