That would force him to sell for less in order to sell faster and the principle reduction wouldn't hurt you because of the discount you'd bought the note for.If that failed, you could negotiate a deed-in-lieu which would cost pennies on the dollar vs a foreclosure.

We have a community of 60 year old slab houses , they were built with copper pipe in the slab for heat , with a boiler for both heat and hot water and metal studs .

A guy who knows how to replace copper and swing a sledge/hammer/power chisel/saw should be able to do it relatively easily. 

Feel free to disagree, I’d like to hear your thoughts. as you mentioned you skim coat the old plaster walls.

Now I am positive cashflowing $2600/mo which will be bumped up to $2900/mo in 18 months once a personal loan is paid off that I had to take out when I started pinching pennies to finish the last unit. 

The guest house needs new flooring, entire kitchen, and a fresh coat of paint.

I was able to negotiate a $11,500 price reduction, $3500 seller concession, new sump pumps and french drains, and a new coat of paint for vacant side of duplex.

Their samples of getting title to the  properties for penny on the dollars is once in a blue moon opportunity and is very rare.  

It just sounds like you are not willing to put a penny in until you are sure it won't come back out.

Never step over dollars to pick up some pennies!