Then they use the inspection contingency to evaluate the interior.  

We were presented with an LOI that was severely lacking in features in terms of buyer's contingencies, rent/CAM abatement credits, etc.

Hi Shar,Here is a formulate to estimate your maximum offer:Max offer = stabilized value - deferred maintenance - stabilized expense loss - contingency - equity fee - other expensesStabilized value: based on your projected stabilized NOI, which is based on the renovated rents and stabilized expenses, and the market cap rateDeferred maintenance: your renovation budget to stabilize the propertyStabilized expense loss: expenses paid before property is stabilized (i.e., taxes, utilities, insurance, debt service, etc.)Equity fee: amount of equity you want to earn based on your repositioning effortsOther expenses: delinquent taxes, financing fees, acquisition fees, etc.

If I needed it I would take from the equity line since I had already accounted for these contingencies.

Also indicate if your offer is contingent on anything, or if you are accepting it in as-is condition.If you aren't comfortable doing it yourself at first, you can certainly pay an attorney to help you or better yet have a Realtor or investor friend look it over. 

Write a contract contingent on inspection.

Is the concept of getting to a certain plateau and then working to pay off all the debt associated with the purchases always saving along the way for contingencies and then living off of all that free and clear income?

How about the concept of getting to a certain plateau and then working to pay off all the debt associated with the purchases always saving along the way for contingencies and then living off of all that free and clear income?

How about the concept of getting to a certain plateau and then working to pay off all the debt associated with the purchases always saving along the way for contingencies and then living off of all that free and clear income?

Like financing, contingencies, and conditions.