REO in Cleveland, Ohio - Need help (and fast!)

[Robert Slatkin]

Hi everyone,

I am new to investing outside where I live, and am considering purchasing an SFR which is bank owned in a good area in Cleveland. Anticipated purchase price is around $40k, and I'm told the current rent would be about $950 a month. ARV is about $75 - 80K. The house appears to need only a few thousand dollars in cosmetic repairs to get it into good shape.

I'm working with a Realtor, and although this will be our first deal together, he appears to be very knowledgeable and a solid person. I just wanted to get the community's opinion.

The numbers are good IF.....there are no major issues with the main systems in the house.

The biggest issue for me is that the utilities are turned off, and I am told that they cannot be turned on until after I close. I have never purchased a house where you can't check all systems and everything within a contingency period, so this is scary for me.

My questions are:

Is it typical to not have contingencies in your offer, and not be able to check the condition of these systems before purchasing an REO in Cleveland?

Is there anything I can do to mitigate the risks in this type of transaction?

Have you purchased properties under these conditions?

Do you consider this to be a reasonable investment considering the terms, or is it just the act of a madman?

I would be grateful for any help you would give.

Robert