It’s unfortunate because you’ll have to pay closing costs again but it will probably be worth it in the long run with the lower and fixed interest rate as opposed to the adjustable rate commercial loan you probably got

We’re working towards buying this home at auction and trying to figure out the best plan for dealing with a very outdated exterior.

Some do nothing other than mowing and exterior maintenance, others handle everything outside except electricity. 

This will be a loan performed on the commercial side of the bank as opposed to the residential side.

The units themselves are not updated and the exterior can definitely use some curb appeal.

I'm not necessarily opposed to the idea, but want to make sure im not getting screwed.

Drainage is key, using a proper retaining wall method NOT skipping anything (youtube has volumes of videos on this as does the manufacturers), a good quality exterior door. 

If there is significant exterior work like removing decks, fences or bushes that would be additional as well.

It was a full gut rehab with everything new except exterior walls.

@Daniel Gonzalez I’m not opposed to house hacking at all.