New carpets, paint, interior French drain with warranty, new structural support beam in basement, 2 new full baths, and much more.

In general, the house needs work on both interior and exterior.

Even recent sales with updated interiors are in the $200 - $235 / ft2 and yours is at $256. 

Recent updates include luxurious vinyl plank flooring throughout, fresh interior paint, new lighting fixtures, and solar panels.

The interior is in need of updates as well.

I would argue there's more important things than a balcony. interior finishes. we build a triplex stacked over and over and no balcony. on our infill single family home we have two rooftop terraces and covered balconies that we are designing now to sell quick. it's more of an amenity to compete and get a quick sale. 

Unlike traditional real estate notes is something that is easy to do from afar since you do not get access to the interior anyways so there is nothing you can physically inspect.You are correct that you will get $500-$600 a month in payments but also recognize its taxed at ordinary rates... 

Or do you wait until a postcard/phone call is returned and you set up a time to see the interior of the home?

We are looking at a property that has the typical old interior stairs that are just short of being a ladder (reminds me of Navy ship stairs). 

This can often be done remotely, giving you flexibility.Home Staging: If you've got a flair for interior design, consider home staging.