Any Advices on buying a house and a land from my aunt

[Huy Ly]

Hi friends,

My aunt is selling her house, and she would like to sell it to me if I am interested in. But first, let me tell you guys a little bit about her situation:

1. Her house has 1 bedroom, 1 bath, and a finished basement (currently another bedroom)

2. She has a vacant land next to the house.

3. She is 50 some years old and ready to go back to Vietnam to retire.

4. She doesn't need a big cash, and she just wants to have a steady amount of money monthly.

5. She is selling to me for $60k (the house and the vacant land, both have separate titles), and I did some research on the area. There are some houses that need a lot of work, but they are being sold for $53k. Her house is nice and clean. No cosmetic and structural issues.

6. She doesn't own any taxes or mortgage. Her house is clean.

My situation is:

1. I need a house for my wife and my sister to stay.

2. I am thinking to build a new house on the vacant land so my family can stay, and we will rent out the old house.

Neighbor Research:

1. Neighbor is a good mix of low-income working classes and retirees.

2. It is close to the public transportation, and it is 5 mins away from 2 major highways.

3. I have seen some rehabbing projects just a couple blocks away from her house. 

4. The current rent in the area is expected $1000 for the house.

My questions and concerns:

1. How does I structure this deal? For example, I could ask her for seller finance, and send her monthly money, which is suitable for her case. However, I would appreciate if you guys have better ideas.

2. About the vacant land, should I build a new house next to it? And if I build one, I need to talk to the bank. Is it worth it for a new (876 sqft lot) house with 1 bedroom, 1 bath, a finished basement, and 2 stories? How much does it cost to build a livable house?

3. If I buy the house and the land, how much does it cost in term of paper work fees beside title transfer, and closing costs?

Please provide me some advice and if you have any questions please leave your comments. Thanks in advance.