Most of the time without any work done, maybe some light cosmetic (nothing close to a flip).Basically a way to buy a newly originate loan with a discount. - Is there a name for this strategy?

I found a nice 3bd 2ba 1950's Cape and purchased from the original owners for $190k, it needed cosmetic updates and some basement water issues fixed but it had solid bones and character that you don't see anymore.

We had to do a lot of small cosmetic things (replacing the flooring, changing the electrical outlets from old yellow ones, light fixtures, popcorn ceilings) and it is still a work in progress.

Aside from the landscaping being terrible, the paint colors atrocious and some other minor cosmetic issues it was a great find.

If yes, cosmetic work or major renovations (conversion)?

Tell them everything that you want to do to the property based on the inspection (roof, plumbing, HVAC, etc) and tell them everything that you want to do to the property from a cosmetic standpoint (flooring, cabinets, countertops, light fixtures, etc)-The general contractor should be able to give you a ROUGH estimate of what it will cost to do the job before the end of your inspection period.

This is above cosmetic improves and include building a deck and installing new landscaping including a large pave stone patio.

If it is priced right, the buyers will buy without worrying about the cosmetics on the inside.

If I have to put some personal money into it for repairs, that ok, but I look for cosmetic fixers. 

If it was rehabbed, assume its shoddy, cosmetic rehab that has covered up underlying problems.The house is overpriced.Rents are overstated.Demand for rentals in the area is overstated.Expenses are understated.Then work to invalidate these assumptions.