Instead of just 'winging it', I'd like to have an effective script to use with these potential sellers. 

It's not that I'm opposed to the long distance reno, though I just figured it would take loads of contractors to do so and at some point it just doesn't become cost effective. 

If I understand correctly and she has been reimbursed after purchase then the split would be based on the ownership split of 60/40.The cleanest way, but maybe least cost effective, would be to sell all the tools and when done, money is easy to split down to the penny.

I seriously don’t think cold calling a list for wholesaling is effective enough for it to be worth it.

You better have a good understanding of what the effect of the docs are. 

I don't think I should count the missed principal payments as cash flow because that is in effect reducing my equity in my property, but what about the interest I would not be paying for those two months?

First, you sure have thought out some options...and finding the most cost effective solution is always best. 

If these are in mint condition... the electrical will no longer meet code, and I recommend re-wiring.The plumbing is a toss up, sometimes we scope lines and they are clean as a whistle; sometimes we scope lines and a 4" pipe has an effective inner diameter of 1/4"... just depends. 

I just hope to be a voice of reason, or devil's advocate, whichever you like.

Whenever the PM say that a repair needs to be made, there's always a voice in my head asking "what if they're lying?"