The sellers appear to just want out so there is a considerable discount.  

Also, if you look online you should be able to find detailed spec drawings for whatever toilet you are looking at.

@Ken Truong  I am not even going to attempt to give legal advice about this, and I don't think you should rely on anything on here as a basis for drawing up legal papers for a loan.The only thing I can say is hire a real estate lawyer who handles owner financed transactions to prepare your note and deed of trust, and any other disclosures needed for your transaction.  

Another consideration is a vacant/burned-out lot next to your house will not be advantageous.

The price I negotiated takes those renovations into consideration.

The only thing I am unsure of, and you want to consult your CPA or whomever it may be, if you can write off the remaining balance when you sell or 1031 in 2-5 yrs like you mentioned.For me, my strategy is long term and I have extra cash on hand, so I personally always take into consideration of buying down points.

Rules of OA: Two signatures for any future distributions, quarterly draws, 50/50 of net income (rent less ALL expenses), third party manager, etc.

Have your architect create a financing package with drawings and everything to present to a builder for a quote.  

We touched bases with her three months after closing and she informed us that her unit was rented 27 days per month since closing.There are other things to take into consideration as well.  

That was also a big draw for us.