@Joel Harrison  different lenders can be more lenient and if they are not entering the interior it  could be easier (e.g. a drive by appraisal).  

And some off them interiors are upgraded recently.

Painted the interior, painted the kitchen cabinets, replaced cabinet hardware, new stove & refrigerator, installed new vanities in the bathrooms, new carpet, and replaced the hot water heaterWhat was the outcome?

If you're using an interior designer, make sure she isn't selecting $1000 fixtures and $20/sf tile when you have budgeted 20% of that.

We got a quote from a reputable contractor for the estimate to repair/replace the damaged interior and exterior wall.

I’ve been trying to get pictures and videos of the interior, but her tenant doesn’t want her items to be in the pictures/videos.

Overall, however, the house is livable -- the exterior is well maintained, there are no major problems in the interior save some cracked drywall and a few water marks.

Take out a hard money loan to renovate the exterior and Interior.

Townhomes are different than a MF.The design and construction of the building would have to allow for easy conversion without a complete gut and re-build of interior.

We put a lot of our own sweat equity into it: replaced radiator/window units with central HVAC in 3/4 units, new roof, new paint, tuckpointing, and major interior renovations of each apartment.