Also look at all the houses on the MLS in your price range to see how they were updated (esp. bathrooms, floors, paint colors).

This was relatively high as the few rental comps in the neighborhood were between $2200 and $2800 for dark dingy unrenovated houses.

Just a quick question,If someone wants to do an interest only loan, does the lender typically offer max loan value equal to the property’s dark value?

This would let us do endless amounts of projects with no money, but the reality is that banks want to see some "skin in the game". 

New distressed flooring throughout the home, freshly painted interior with contemporary paint colors, newly installed baseboards, and fully remodeled master bathroom and full guest bathroom.

You may get forced on your choice of paint colors and trim work (more expensive if a lot of gingerbread).3) Some times they may require you allow public access once a year or so.4) You probably won't be able to ever raze the property no matter how much it costs to maintain or is rotting out. 

The next time I read the book, I will use a different colored highlighter to see what I missed the first time. 

Can you give any more color to your experience with this type of loan?

Dark, exhausted. 

Get the property under contract, find out the price then color in the details.