I would also add as long as no major unexpected repairs come up in case the A.C. or hot water heater were to die.That should hold them short term.

Currently, we've decided to split the cost of a new septic system and still waiting for engineering plans to come back.

Which in Vegas with 12 homes is usually limited to 1-2 water heaters.

House has had major water and termite damage and will need to replace the floor joists, girdle, and sill.  

In your case the property is still above water.

It probably needs a new roof, there might be a water leak, and it's a HUD home, so I probably need a private lender.

Most condo boards like it when apartments are renovated as that typically raises the sales prices in the building but in smaller boutique condos where everyone will hear the renovations and be affected by water shut downs, etc, that might not be the case.

I assume its from water damage that occurred LONG ago (the current owner says its been that way for the last 20 years). 

"Real Estate Commission Rebate Program"Pre-arranged and in place for pre-approved borrower/buyer clientsGood Faith Bid for a Purchase Price of: $500,000Listing Pays: 3%= $15,000 / Rebate to Buyer: $12,000Rebate to be credited at closing as follows: Closing Cost                         $ 8,000Home Warranty                  $ 500Attorney Representation  $ 700 New Flooring$New Window Treatments$New Windows$New A/C System $New Appliances                   $2,800Hurricane Generator$ Other: $_______________________________                                    $ 12,000 Rebate TO BUYER

You need to do an accurate loan application with a lender and have them run it through Fannie Mae's automated underwriting system (called DU).