Starting out with foreclosure

[Chris G]

Hello all,
I just found this site and it looks like a great resource! I hope to learn a lot and contribute more in time.

Anyways I've been learning about real estate investing for the past year now and I've been looking a little more seriously into getting my first investment. As I was looking a few days ago I came across a great deal (at least I think it is).

It is a colonial in foreclosure with a selling price of $9,900. It has 4 bed rooms and 2 baths. Zillow.com says it's value is about $95K+ (which I know is just an estimate). It was previously rented out at $650/mo, taxes are about $1K/yr. That's about all of the details that I have so far. I've seen a picture on the internet where I found it and it looks a little run down but manageable with a little time/money which isn't a problem.

My question is: If I go ahead and buy this house, can I instantly turn around and get a home equity loan to fix it up a bit and make it really rent friendly? I would only need about 5K but 10K at the most. I'm assuming that wouldn't be a problem.

Are there specific things that I should be looking at or asking before I go and do a walk through of the house and eventually get an inspection?

Some additional background about me is that I'm self-employed making a good living, own a house and a credit score of 760+.

I hope everything here has given you enough info. If not, I will be more than happy to give you more info.

Thanks in advance and I look forward to reading your replies.
-Chris