Foreclosure-Doublewide on land-Mold

[Mark Gruetzmacher]

Hey everyone, just thought I would run this by you guys and see what your thoughts are. I came across a foreclosure that was on the market for $35K. It was a 1999 28x60 on a basement and 1 acre of land in the city so city water and sewer. It sold back in 2007 for 120K. Tax assessment in 2013 was 119K. The VA owns it now. The issue with it is that it has mold. The basement had an unknown amount of water throughout. Looks like at least 6 inches. Being that the owners left the property and turned off the power, the sump pump was not pumping. Also the landscaping on the outside just leads to problems, IE-ground sloping back toward basement,missing downspouts, etc. One downspout even stopped right next to a big window well. This past spring we had a few times where we got 2-3 inches of rain which I think aided in the water in the basement issue. So since the basement was finished and water was in there, mold started growing. There is mold spots on the walls 2/3 the way up on the drywall. There is some surface mold upstairs on the kitchen counter top and on a window sill just a little bit. Overall the upstairs is in decent shape though. The belly blanket is still on the underside of the double wide and shows no signs of mold there. Ceiling doesn't show signs either.

My thought was to totally gut the basement.  All the floor coverings are gone already, no doors or trim I don't think either.  So tear out the drywall and replace studs.  The plan was to use it as rental because the rental market for that should warrant $800-1000.  I planned on have some mold service come out as well.  I have no problem trying to clean it up myself as well but would like to get some estimates as well.  I think I would plan to demo most of it first and then have someone come out to look at it.  What do you think?  I think it is well worth the asking price but the word MOLD scares people away.  

What would you do and how would you do it?

Appreciate your feedback.