I'm looking for suggestions/solutions.

Hi Jason,Interior value-add:Upgrade to black, faux SS, or SS appliancesTile backsplash in the kitchenNew cabinet doors or new cabinetsNew cabinet hardware (door and drawer handles)New countertops or resurface countersInstall modern light fixturesInstall new bathroom fixtures (faucets, shower heads, toilets, vanities)Tile surrounding the tub2" blindsVinyl wood plank flooringUSB outlet portsExteriors/Other (for a 30 unit - you have more options when you are acquiring larger 100+ buildings)Rebrand (i.e., new property name) and new signageLandscaping overhaulUpgrade laundry facility roomBalconies or patiosGreen programRUBS

Easiest solution is for him to deed the house to you with the seller owning the note (lien) on the house. 

I'm not sure which you're doing, and while I agree BRRRR is overhyped on this website I'm not sure I agree you have put forth a better solution, maybe you can explain it better. 

The Seller's proposed solution (add a humidifier) does not solve the issue.

Not knowing your situation, I can’t recommend the perfect solution. 

Leaks had been fixed with duct tape leading to entire beams needing replaced, electrical solutions were sketchy, and the kitchens and baths needed a complete gut job. 

Sometimes the solution is to do 10% or 15% down (to count the other 5% or 10% towards checking the "reserves" checkbox), which does indeed exist for jumbo (at least in California).

By bringing a property up to modern condition with completely updated systems, structure and design.

What is the best solution to this matter in your opinion?