The climate here is - average highs in the summer are 80's and 90's with some 100+ days.

I feel many new investors shoot themselves in the foot by not approaching their local bank first to test the lending climate.

Termites - are you in a termite susceptible region/climate?

It's probably a little small in other climates where people spend more time inside.

The combination of good jobs in a diversity of industries, favorable climate, and liberal policies have been attracting people from all over and there is no sign of this trend stopping.

However, the current political climate up there doesn't seem to leave much hope of the Park coming to fruition. 

  The neighborhood in Garfield park still is not very safe, also the political climate in Chicago is not the greatest.

Granted all areas have their pros and cons, but to hear that the climate towards landlords/REI investors is changing, is a little unnerving. 

Likely moisture and/or rain has been getting through.Mold: General climate in the area is dry, but we get enough major rain showers in the spring and fall that any exterior holes likely allowed water to get inside.Bank offer: Do you think I can actually get the house with an offer at 50K.

I assume your REO is in California, but if it's in an area with a temperate climate you would have to consider what to do if the property is winterized and/or the utilities have been shut off.