For example, I imagine I could go as far as creating an entirely separate kitchen and bathroom for the studio unit and its own exterior door, but could I do as little as locking off the living room as separate quarters with the existing living spaces, kitchen and bathrooms as shared areas? 

The kitchen is in the middle of the first floor enabling it to easily service both front areas and back yard.

(Are you sure, if its for rehab are the windows, roof, furnace, water heater, AC, kitchen, bathrooms, paint and flooring good?) 

Their credit is a mess and the only way they can live in a decent place, with a little yard, nice kitchen for mom, and a garage is buying a SF\TH or renting one.  

````````````````The upfront agreementIn order for the upfront agreement to work, you need to frame it as a very fair, 2 way business agreement.Here is a possible exchange...After the walk through, you're sitting at the kitchen table, looking at both mom and dad the sellers.I fold my hands and I looked very solemn, I try to give them is kind of an expression is possible, as sincere as possible, I have my legal pad, a pen, and a blank letter of intent in front of me.I also have a folder of comps and rental information.So here's the upfront agreement...Investor: "So Bob and Susan thanks for the walk through, I just wanted to phrase how I'd like to see our business relationship work.

"Drywall in kitchen needs work" means "The upstairs bathroom flooded and there is mold everywhere!!".

She said that one night she went to the kitchen and there was a boy and a grandma standing there.

Nope gorgeous house, upgraded kitchen.

joeJoe, I am not a Realtor… I am a full time Real Estate Investor...

Focus your improvements to the big appraisal areas, kitchens, bedrooms and bathrooms.