Welcome to the dark side.:)We always recommend people exhaust their conventional financing before they go to portfolio because, although it's easier, it's more expensive.Stephanie@Jon Arsenault

And with low down payment (no skin in the game) loans, many people are willing to pay "whatever" and let the appraisal determine FMV.  

Theu receive this odd weird color mailer and the mailer claims that they can buy their house in cash.

Also, my cellulos Insulation are so dark, is it mold on there and should I be worry about it?

Neutral colors.

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.