These sellers are in a much motivated, and emotional state. 

I suggest you are projecting your own emotions, not suitable for a serious discussion regarding money. ;-)Why did B.C. institute a tax specifically on out of country investors?

Now it's done and you do your best.Don't rash into anything quickly in such an emotional time - you'll regret later.

I need to separate emotion from business.I have recently started becoming serious about investing into buy and hold properties. 

I'm not emotionally attached to the property or anything...

If they reduce price by the cost of the expenses plus a little bit for time it is the same property that you were willing to buy and hold except a lot of things will be brand new and less likely to break in the near future.In terms of negotiating don't expect much more than the contractor's bid off the purchase price if these sellers aren't too emotionally involved. 

Current LayoutPotential Layout will increase the rent by $200-$300 If you are doing it for emotional reasons, "it feels good to move kitchens around" go for it. 

I believe to be emotionally invested in this because I found this property myself.

I’m not looking to sell, maybe just too emotionally attached to the house.

Originally posted by @Brian Garlington:You can play it one of two ways......If she is a good tenant, tell her you need to add the ghost as a new tenant on the lease and you will need to now raise her rent.If she’s been a bad tenant then start the eviction process because she has told you after the fact that she has had someone move in and this wasn’t part of the original lease agreement  What if they claim the ghosts are Emotional Support Spirts?