I'd say that's a pretty safe bet considering we're going to have to spend close to 50k to strip it down to the bones and rebuild it from the mainframe up to  and including the roof.

Doesnt sound like youre looking to rebuild anything at this point.

I know of a homeowner that pulled their permit as a contractor to rebuild their home, but this was for  their primary residence.

We would like to keep providing working folks with a place to raise a family or concentrate on rebuilding a career. 

By "gutted" are we talking back to studs and in need of full rebuild?

My partner back home is a contractor, now when we complete gut and rebuild a home, the quality of work is high to the point of perfection.

I have to see how the remodeling/rebuild is going to go.  650K is top of head figure. 

I don't buy them new, however, I have located appliance re-builders in most areas where my properties are located.

However, I typically buy reo properties and put in new valves (plumber...with bath remodel) and supply shut offs and rebuild the toilets ($25 in parts but $150 by plumber) new water heaters if older than 10-12 and newer appliances, etc.  

The reason for the $ amount is that if you had to gut a bathroom you could figure minimum of 5,000$ to rebuild, seeing as this is only the bath/shower but will share a bedroom or hallway wall, you may have work to perform in more than one room which essentially could amount to half a bathroom remodel.Trust me, I've been there done that enough times already.......If seller won't concede funds, suck it up and consider it on the job training you just paid for.Hope this helps - good luck!!