Let me know when you get a chance.". . . we already discussed our interest in discontinuing our lease

Since the property is in the family is it possible to do seller financing and still get a 203k loan for the improvements?

The ground lease will usually spell out site improvements the tenant wants and connections.Best thing usually is to connect with a local commercial attorney familiar with development to get your questions answered.You try to limit up front costs but even then you can spend tens of thousands on some deals that do not work.  

In your description of the home you can put all of the improvements you are going to be making, and you can use representational photos as long as you label them as such.

If the repairs were done quickly, walls and ceilings open to dry out, there is little chance of mold growth or any structural problem.  

Cap Imp vs Repair Expense IRSI'm in the middle of doing some 2017 tax crunching last minute so of course I am on Bigger Pockets forum instead of finishing up my taxes :-)Anyways here's a useful tip on Cap Improvement vs Repair ExpensesMy strategy has always been to increase regular maintenance, repairs (Repair Costs) and spread out costs over time instead of the hands off approach to defer maintenance into larger Capital Improvement expenses. 

One, that is 10k more than mine, and another one that is 15K lower, but needs a lot of improvements. 

Or, your company can do the sale on a land contract and take a bit of a chance when they might want to refinance. 

My desire to improve a neighborhood and my vision of what the block could look like got in the way of common sense.  

They all desire improvement but have been ineffective getting the improvements.