Here is the detail of his security deposit: Removal/Clean up of was, $75Wall Repair, $150Reattach bathroom bar, $25Reattach Bedroom Door, $25Reattach Closet bar, $25Carpet Cleaning, $60Ozone Generator, $49.99Treat home with 40 hours of ozone generator, n/cClean walls of nicotine stains (16 hrs @ 12/hr), $192.Clean kitchen flooring/appliances (8 hrs @ 12/hr) Kilz Odor Seal Primer 2-5g buckets, $304.Application of Primer (48 work hours), n/cSUB TOTAL 1001.99Less Deposit (500.00) Total Due $501.99. 

That said, I have put in lot of upgrades including new roof, granite in kitchen, bathrooms, double pane windows, New HVAC and such, at least 30K into the property.

So there no Owner occupied Discount/Credit?

I will be added a new bathroom.

I know a strategy of creating equity within a preforclosure deal, is to negotiate directly with 2nd position lenders to see if they'll take a payoff discount. 

I started an in my account by the first discount, still seeing if it works. 

They'd agree to reduce the lien to a discounted amount so long as you remove or legalize the illegal addition within a certain timeframe of closing in it.

Hi William,The house we're in has an unfinished basement that we'd like add 2 bedrooms and a bathroom to.  

I have the cash reserves to replace the whole thing (thankfully) but I'm curious to know what others think.Additional background, I have to replace another AC unit on my primary residence this year also so I'd like to be in a position to quote two units and get a discount.  

I have a 4 bedroom, 2 bathroom house, 1350 sq ft.