Since moving into another fixer-upper isn’t ideal right now, consider leveraging your $40K for a low-money-down investment, like house hacking a small multifamily or using creative financing (seller financing, subject-to, or partnerships) to avoid tying up all your capital.

Several years ago when the low flow toilets came out, some just didn't work well at all.

What is a foreclosure rescue scheme?
A foreclosure rescue scheme is a type of fraud that takes advantage of homeowners who have fallen behind on their mortgage payments. The fraud perpetrator approaches the homeow...

It would be for $120k plus closing costs for a year or two until we could refinance.

Also, there may be some tax benefits if they can qualify for federal funding based on low income. 

And after you have sent 15k on downpayment and closing costs, you have 10k left, which is just enough for one HVAC emergency replacement and some paint. 

We came in low with our offer, but were willing to skip the inspection (which had already been completed before we offered) and stipulated that we would close in 20 days, which was super valuable to the seller.

I came across The Investors edge that offers 100% financing as long as the all in cost is 74% or less of the ARV.

The mold house would only be a good investment if you can buy it at a low enough price to cover the necessary renovations.

If operating costs increase, then customers/tenants will eat the costs in tight markets.