Let's look at floors.

I have two potential floor plans picked out that would work nice on this size lot. 

Each side is a 4 bedroom/1 bathroom with original hardwood floors, pocket doors, and large rooms.

Do not make shortcuts in that regard.We also replaced ALL the flooring in the entire house.

I thought part of the floor was dirt; turns out there is concrete underneath after all.

Living room converted to a master bed with walk in closet, bathroom with heated floors and walk in shower.

I did a very light rehab (flooring throughout, new paint, inside and out) and thats about it.

My capex budget includes roofs 25 year life span, floors 10 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span, etc.

New floors throughout, new kitchen cabinets, bathroom vanities, ..  

The bent woof blocking at the top of the front beams can be reinforced with 4" x 4" x 5/16" steel angle iron fastened to the bottom of the floor joists and flush to the face of the new beams.