However there is some deferred maintenance that that came up in the inspection that the seller opted to knock down the purchase price instead of fixing himself.The item in question is a bathroom that has significant water damage.

We had a bathroom faucet go on the blink; we called the Home Warranty Company.

We converted a den into a bedroom, added a closet to this bedroom and added bathroom to make it like a master bedroom.

In fact, just before we left out of town, the master bathroom shower when turned on leaked down to the kitchen ceiling on the next floor.

A rental bathroom and laundry room, window sills, caulk and sealant that hasn't been addressed in 10 years? 

It isn't as simple as looking at bedrooms and bathrooms and figuring out the price per square foot as the condition of the home, extras (attached garage, granite counters, etc) affect the price.

Install a new toilet, caulk bathrooms or windows.

Whether it is a Duplex (In DC these are going to be out of your $10k price range), single family and rent the rooms to your friends/ roommates, or in your case what i think is the most realistic due to the capital $$$ you are working with; purchasing a 2 bedroom/ 2 bathroom condo w/ $10k down and renting out the 2nd bedroom.  

Mostly builders grade in the kitchens and bathroom though.

II can see from the pictures that it really looks like the bathrooms and I guess what looks like a dinner or a living room needs a lot of rehab.