Value I would say is around 65ish. 3br, 1 bath, all wood floors, nice little house.

But having worked for a construction company in college I like the idea of a complete clean slate.  

I am afraid my deal is too thin,  my budget is $50k for kitchen , 2 bathrooms, deck, refinish floor, whole house painting, simple landscaping, new  furnace and water heater, and some electrical and plumbing work. 

It's also slated to go up in an option in 1 year even higher.If you are even considering this you should look at having corporate keep paying for a portion of the lease for a few years or negotiate a reduction of current lease rate and extending five more years at that rate without the rate increasing.

Hardwood floors throughout the first floor (good), great kitchen (good), big rooms (good), for $183,000 (bad!).

The deduction for investment expense is limited by a 2% of AGI floor.

Jody Young so working backwards from the floor limit of 117k what do you get as minimum offer?

I removed that next, luckily finding no damage to the sub-floor underneath.

I am struggling with determining what type of floor I should go with for the main area, kitchen, stairs and hallway.  

Biggest things I would look at is whether the roof is in good shape and whether the floor seems solid and mostly level.