It is on a corner lot and has open space on two sides. 

You have to understand that these people do not need to move so you have to find out the pain points which is often upkeep, maintenance, and too much space. 

I looked at some DEEP energy conversions and their basement refreshes look ideal but not sure what the cost of that is. i did do an energy assessment a while back and in 2014ish blew in over 2' of insulation into the attic space, so that is good there. thoughts on where I should start this effort?

Have contacts in the regional bank space here on the West Coast also (Banner / Umpqua / Opus / US Bank / BECU / Etc).

All of the big players in the management space will NOT collect a deposit due to the way the law is structured. 

What have you used/seen so far in this space yourself?

Buyer issues range from only 2 parking spaces, One furnace and the need for some kitchen and bath refurbishment

I plan to consult an architect on whether we have space to add stairs and finish the attic, but not sure how that will shake out.  

These loans can be more versatile, allowing you to take down a property like this which may not work on other loan types.IF you have enough space on the lot AND other locally required things are true (like total sq. ft of the lot, linear frontage feet, etc) you may be able to purchase this using a commercial loan, split the lot into two (or rezone using a SPUD type of specific zoning modification) and end up with a fully marketable property, even if what is there now is not.Best of luck, Kurt!

With a professional career in real estate investment and management in the small investor space, I have had the privilege to witness many pivots to the industry.