How distressed is too distressed?

[Tim Lindstrom]

I looked at a property today that was listed in the MLS for 35K. I knew it would be a fixer upper, because comps in that neighborhood are selling for ~105K. The roof has a big hole in it, and had obviously been leaking for while. every wall in the house had mold on it, and every ceiling in every room was either coming down, or already down.

I was thinking if I had  a mold remediation company gut the place, I might be able to get a new roof, drywall, and flooring,  and get it rentable.

I'm wondering if anyone has ever taken on a totally moldy house,  and what their experience was.