I'm located in Western Mass where the market is somewhat dried up but I believe there is also great opportunity.

They have to come back multiple times as the mud dries.  

@Ned Carey  generally speaking in our neck of the woods   you cannot go shopping for title insurance like you describe there are only about 6 or 7 companies that issue title and something like this that is cut and dry .. almost certainly will not fly with any of them.

She hung me out to dry for a few minutes and finally said ok I'll take it, but I think it should be 80/20. 

I'm fine with being the rehabber and her being the realtor, together we'll make a strong team.

So, I brought up rip out and dry wall, worst but to money and it (it) could last...

in your expert opinion is the NPN volume drying up somewhat or is there still a bunch of shadow inventory of notes ? 

The last 1 we put in had A LOT of dried thinset, grout, paint, etc in it (damn contractors) and it cleaned up perfectly.  

There has to be good headroom and, ideally, it's dry.  

Comps in the area are going for about $245-$280/sqft depending on condition.Now heres the problem, we just did a home inspection and found out there is only 60AMP service w/ knob and tube wiring..siding has dry rotted and the windows need replacing.A minor foundation settlement crack.  5 Year old roof.