This particular home sold for like $560k in 2006 and the bank took it back at the auction for $225k (loan balance I think would have been around $360k) and there was no second lien or any lien that would incumber title that I could find. 

I'm playing devils advocate here but there is still a chance that's just the blatant lie he was sold so he didn't bother contacting the "tenant". 

I feel like its a lot of house to consider myself, but theres only about 7 homes on this stretch of waterfront, without knowing the area, I'm telling you wonderful people on BP, the opportunity probably does not come up again for a long time to buy a house like this as stated earlier most of these homes stay in the family or get sold without hitting the market.  

I've purchased/sold many properties to/from out of state investors, and they never had to come here.Good luck!!

My plan would be to replace any large capital items upon purchase.I am using $6000 annually for cap ex, and $3000 for maitenance.

(One 4,2 within .25 mi sold for 260k in Sept) Asking price is 60kTomorrow I will be going to see the property and even with me looking at several properties in the career, Im still not the best at determining the rehab cost.

We maintain some properties in Chicago land area and I believe the items need repaired before closing.For those that aren't lucky enough to experience this, some cities require an inspection before closing and will ding the property for things that you wouldn't think twice about elsewhere.

If it is a commercial contractor, you would usually list out items that you need done.

When I first read your post I thought maybe you were thinking of selling something and seller financing, but Brandon's answer made me see it the other way around.I've sold a lot of properties via seller financing, both wraps where I had fully assumable VA/FHA underlying loans, and places I owned free and clear.

After getting married and starting a family, I finally renovated the home, sold it, and bought a new home in the suburbs.