The income to house price isn’t terrible yet. $60k to buy a $289k house isn’t Seattle where an average income of $80k is supposed to buy a median home of $819k. 

@Abdul Shishi Why do you think it's a terrible idea?

The two are very different - I'd happily buy a great deal from a terrible agent, but that doesn't mean I'd make them a permanent fixture. 

You will need to use that money to pay for the bed bug treatment.Cash-for-keys is a terrible idea and should be removed from your vocabulary.

You might find the background/credit check is terrible and have to deny them.

This sounds terrible at first glance because of how often FHA deals fall through BUT the property will cashflow $1000+ per month after rehab.

@Harrison CookA stick built house from 1960 is not terribly old  ... definitely young enough that one would expect to find finned hydronic baseboards and not cast-iron radiators with a steam / gravity fed boiler.When it comes to your building envelope, if it has not been updated, you may have early paper-backed, fibreglass batt insulation, but could quite possibly have paper-encased gypsum insulation ... in either case, it is likely no more than R5-R7.  

That said, when the market got bad, it wasn't terrible here ... life is all about balance, right?

It was a terrible experience, which I  now realize that I am not over yet even though it has been many years ago.So I started a software company for property management to make it easy for landlords to manage their own units.

@Aaron Carter, it's not unusual for new builds to be terrible candidates for investors, is it?