Trenching around the property is the preferred mechanism, but in an attached multifamily situation, you would need to trench below the units along the adjoining walls.   

I have 2 credit cards and a auto loan.

We are currently paying off the last bit of debt (not including a auto loan, which if that will hurt us please let me know) we have which should be done by November and then we want to go straight into our first investment.

I have been to mechanics school,Welding school,cut meat for 35 years, ran heavy equipment, been an over the road truck driver and owned a butcher shop.  

Since all the mechanicals are in the basement it goes without saying that the furnace, water heater, and electrical panel will all need to be replaced.

sorry (auto-spell)...if the repairs are not completed...

Realtors HATE 203k, so just know going into it that as soon as someone says "203k" most realtors will auto-respond by telling their sellers "oh no don't take this offer, take any other offer."

Curious how the 'mechanics' of a transaction like this work.

(mechanic's lien, hoa, etc) Who placed it against the house and how much would it cost to get removed?

Something like this:This home has a completely remodeled kitchen and bathroom, new hardwood floors throughout, all updated mechanicals, new roof, etc - which none of these comparable properties have.