It's rough in the way that they have let their kids draw all over the walls and the kitchen counters are from the 80's.

As far as ROI, there are a few givens that will always give the majority or even dollar for dollar back, such as landscaping, flooring, updated kitchen and bathrooms, and security systems.

It's not unusual to find 2x4 rafters or 40 amp service above the kitchen sink etc. 

We added value by re-doing the whole house, installed vinyl floorings, rebuilt 2 and a half bathrooms, re-painted the whole house, replaced all the hardware in the house, installed new lighting, ceiling fans, re-painted the kitchen, and completely remodeled the upstairs.

Been at it for 5 years now, and absolutely love it, a lot of kitchens, bathrooms, floors, a few decks, and a couple compete basement finishes.

The contractor has stated that they'll fix any damage, but some of the damage is to drywall that has kitchen cabinets hung on them.

Hi Caleb,From our experience, when flipping properties the most efficient ways to spend your money are the following:Focus on kitchens and bathrooms, as these areas consistently provide the most value for your investment. 

If you are adding full kitchens, you are probably going to have fewer units.

I have made a lot of improvements, upgraded the bathroom/floors throughout the home and kitchen cabinets 

Since your next to a Restaurant, could this be a commercial prep kitchen?