This guy is telling me it needs 150k to reno, but I have a really good team of workers that usually keep my costs down substantially and do very good work.

I would wait until that PPP lowers in a year or two then see if you actually get a substantial gain in savings. 

Equity & Appreciation:If the property has appreciated substantially, I’ll assess whether refinancing to pull out equity or selling outright makes more sense.

If it were me I'd pass or do a substantial escrow holdback until you knew if things were properly permitted, etc.

Partner Driven negotiated the purchase for $125,000, based on the property's need for substantial repairs and upgrades.

If that was true would they have not gone down substantially when rates went up?

Offer is substantially above asking pricef3.

Are you substantially better off if you proceed?

I found the county criteria which reads as:"Property must be minimum of 1 acre, meet the underlying zone district, have adequate parking, meet the requirements set for by the Wildfire Hazard Overlay District, have valid water and sanitation, have legal access, use the primary dwelling unit, be free of violations, and have no substantial detriment to the intent of the Zoning Resolution."

If you aren't securing properties at a substantial discount, you may end up maximizing the LTV, resulting in higher interest rates.