Yes, the oil based Kilz works quite well, you just have to paint EVERYTHING.

That included gutting to the studs, joists, re-plumbing everything (tub and toilet were re-located), re-wiring, insulation, moisture-resistant drywall, new window, new basic tub, subfloor, underlayment, fairly cheap tile on floor and tub surround, sink/vanity from lowes, basic toilet, paint, etc.

Do you mind my asking why you are choosing this path as opposed to any other?

I have been running a successful painting business for the past eight years specializing in restoration, fire and water loss.

Yes, the inside can be trashed; there can be hidden structural damage; mold; lead paint (oh no!)

Rents will be $375 per unit when I get the rehab (painting) finished.

Mask off the tub before the quote so the contractor sees he only has to paint.

You can still look to close a short sale up to the date of the sale and if the lender so chooses they will give your deal more time.

I have seen the house a few times and have recently had two contractors give me estimates on finishing the house (heating, plumbing, paint, carpet, cabinets, fixtures, etc, etc).

At least you can estimatete life and save up for them------ although I did have a tenant's kids get up on a roof and pull off the shingles, chop holes in the roof deck, and spray paint grafitti.