For paint/materials and labor to repaint a 3br w/ 2 coats, about $1,200.

A good cleaner makes the need for painting much less.

I just steam cleaned the carpet, touched up the paint and home looks like the way when i bought it new.

I have found more mold underneath the counters and cabinets in the kitchen and she is denying it and I found proof that they painted over mold on the walls so they did know about it.

I paid roughly $500 total between repair and paint.

I wanted to get the opinions of all the smart people on this forum on whether the rest of the stained drywall really ought to be removed (to prevent further problems, e.g. mold), or if it would suffice to just to let it sit for a little bit longer (i.e. to make sure any possible moisture is dried out)  before applying kilz and painting over it.

House is in excellent shape and needs, at most, interior paint.

 $3-4/sqft for flooring and paint from Sherwin Williams.  

Also, if the house has a new roof, new water heater, and furnace, and/or newly painted exterior then you may be able to justify decreasing your budget for capital expenditures and repairs/maintenance.

If this is a sub $150K property I might just put a new coat of paint on the cabinets, change the counter top and add a back splash to bring it all together.