Does the 203K streamline FHA loan cover paving driveways?

At current, I cover the oil for two units that share one tank.

i just found a forclosure a 3 br 2 ba house for obly 60k comps in the area range from 130k all the way up to 300k only problem is the unfinished basement walls are covered in mold going up the stairs and up the wall in the living room right beside the stairs.

My offer to the seller (please analyze and offer feedback, offering soon)-$230,000 for the house-$60,000 down (paying off lien, avoiding foreclosure, I'll cover closing costs)-Seller financing for the $170,000 balance at 3.5% ($495.83 payment to him monthly) interest only for 5-7 years (seller's choice)-If he takes the offer for 5 years, he'll net $259,749 for the house-If he takes the offer for 7 years, he'll net $271,650 for the houseOverall I think this is a very fair offer and not a bad way for him to get out of this situation considering the alternative.Property and Cash Flow Analysis based on Current RentsOffering Price: $230,000Closing Costs: ~$2,500Rehab: ~1,000 for some exterior paintingDown Payment: $60,000 to payoff lien, closing costs.

Because I can spend 40k on a paint job (if I wanted to) and no lender would cover that expense under delayed financing exception loan on top of my purchase price.

My thoughts are I was planning on doing the upgrades once he moved out anyway, and if I could get him to cover some of the cost, it may be worth doing now. 

I agree with @James Wise that you must cover all of your bases when investing in a property that you cannot physically see.

I think you're right, they may see it going toward foreclosure and the ridiculous time and expense in NY is not worth it and may not even be covered by the equity.

Lisa BoyceChase GambleKrista WilsonBetween these three you shouldn't have a problem getting ALL of your bases covered... 

But in those cases you are increasing rents to cover increased expenses and maybe padding a bit to your advantage.The downsides to both are that when tenants don't pay for utilities, they tend to abuse them.