I have started interviewing other contractors as back up. 

That is my backup plan.  

That way you can show the investor some numbers to back-up the $750.I also agree that you want to get a ARV, which in this case you could run using either cash-flow analysis or comps in the area.  

Also, smoke detectors in kitchens almost always get removed and never put back up again.  

Galvanized pipe rusts and if its drained the rust can get really bad and create leaks.If the wet baseboards back up to the washer hookups, that could be the source.  

Therefore and correct me if I am wrong but I would have to tear this addition down to bring the house back up to code or at least take it through the permitting process if my end goal is to retail flip this property. 

I haven't actually had the "is cap rate important" debate, so all points of view are interesting to me.Let me back up an state my goals, and perhaps you folks can comment on my KPMs.My investment strategies to date have focused almost exclusively on growth and appreciation.

Whenever it needs to be cleaned and refilled it takes a couple days to heat back up which is obviously a big negative for guests expecting to use it. 

This is time sensitive, as the bank is requiring it as a condition for our commitment letter, and time is running out on the contract (they have a backup offer above ours with better terms).We have a basement area, probably around 250-300 square feet, with Asbestos tile that needs to be pulled out.

Depends on where the water comes from.I have a perimeter drain with sump pump and normally that's enough except if you have a power outage and no backup power.