Last sold for $2000, now $40k

[Charlotte Edwards]

We are considering our second property and are interested in it because it's in a good school district and community with low crime. Our plan would be to rent it out until we move to the area; maybe 3-5 years from now.

The house we're looking at is listed 'as is' for $40k, but it was last sold for just $2,000 back in 2012, I believe. It appears that the floors are just plywood and there's a gap between the wall and door (from photos online).

So I'm wondering: why would it have sold for SO little...there must be a major issue, or am I wrong? What should I look for? Mold and asbestos are my first thoughts.

I think that if we can get it for well under 40k, it would be worth putting 10-20k worth of repairs into it to make it rent-ready.