Ok,I'm a little devil and tempted to say " That's there problem,not yours".However,unless you are not going to have the property appraised before the closing (I severely doubt that),she is gonna find out anyway and demand a higher price or tell you to get lost.Be the helpful person and suggest it is going to appraise much higher and show her the comps for a home in her area and physical condition.

Anywhere, any condition, any price range.  

The condition of the house is often an I dictator of the condition of the title. 

I got it into "livable" (tolerable) condition and worked my freakin butt off with sweat equity. one paycheck at a time I would buy a little more.

If they have a smart phone take a video and photograph of the status and the repair, just in case have a record of your attempt to improve conditions. 

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If the seller balks at the Estoppels you can make a condition of a large hold back post closing.

Of course these are averages and depend on condition, finishes, etc... but I think it illustrates the point.Some of that extra stuff you mentioned might slide the lever more towards the condos.  

I can see if I can meet your requirements and conditions on long term holds.

They have been their 40 years but still own 167k on the first mortgage, 14k on the second, The ARV is around 215-220 (subject to change since I only did a quick Zillow Search) She said she talked to the bank and they would look at doing a short sale but she needs cash to get him out she sound like she is in a real bind and wants to move fastI explained to her we would probably need to come in under 100k to make this work and most CFD people are just looking to buy house when the have little money or bad credit but they would have to agree on a selling price, which in the condition would probably be less than what they owe..Do I have any option I can provide her?