Help Needed: Strange Situation, Wondering if I can make it Work

Hey all. I am currently in the process of buying a house from my grandfather that will need some minor renovations inside, and a new garage (currently a delapidated one car detached, would plan to replace with a 2 car detached). The house is probably worth $140k as-is. My issue or question is basically, I'll get a portion of the cost offset because of the need for repair. I am wondering what options would be for financing both the home at a discounted rate + financing repair and renovation costs all in one. Totally new to this and have no idea where to look or start.

Any information would be great! Thank you!