What to do!!

[Johnathan Osborne]

So I have found a foreclosure that had an offer during the first look period, I am assuming the offer fell through and now the bank has lowered the asking price by 20K to $39,900.  The house needs lots of work such as new kitchen, bath, and replacing subfloor that has had water damage.  The bank (Wells Fargo) has placed a sump pump under the house and has done some foundation work.  It was built in 1976 has single pane windows, no heating/air, need some exterior siding replaced(water damage) etc.  I have the money to buy it, but not to do all the repairs.  I can do some of the basic repairs myself such as flooring, fixtures, etc.  My short term goal is to make it livable and move into it and eventually turn it into a rental or sell it.  I think the house would need at least 40K of repairs.  The tax value is 87k, 44k for structure and 43K for land.  Rental rates in this area for this size house would be 800-1000/mo so it may not fit the 1% rule if repairs were more.  I think one could sell it for at least 120K with basic repairs/upgrades.  Any advice would be great!