I've purchased a house that had 'everything replaced' but I've been hit with big bills unexpectedly...so if you feel the urge still without cash reserves (or the ability to build one) I hope you have some credit you can tap into (which it doesn't sound like do).  

Did you do one and still got bit by an unexpected sewer bill?

Good suggestionOn one of my first rehabs I had an issue relating to major unexpected deficiencies in electric and plumbing systems that were exposed in demo and not in the budget. 

I am a Realtor at Keller Williams in Colchester and I would be delighted to help you navigate the home buying process. 

Quite frankly, unless your friend ENJOYS sleepless nights, constant stress and worry, unexpected and excessive expenses I would stay CLEAR of real property.

No bidding wars, no GC headaches, turnkey home for meNo unexpected carry costs, marketing, a single agent only fees for friend I did read that friend can't sell it to me for less than 25% market value which leaves me a potential immediate equity but could be discouraging for him since he could potentially make more from this project.

. $20k towards down payment and closing costs, and the rest for your reserves.I know it's probably not the answer you wanted to hear but you don't want to be caught with your pants down with an unexpected expense, eviction, or vacancy.

@Ryan Horne , I'll add one more thing that can get you a loan - having an amazing deal.If you are bringing me a property with tight numbers, one unexpected thing - and there's always at least one unexpected thing - can blow your budget out of the water.If you bring me a deal with a giant spread - and can back up the spread with real numbers - I'm far more likely to lend on it, because even with one giant unexpected thing, you can probably turn a profit, stay in business, and most importantly, pay me back.

There are going to be setbacks and unexpected obstacles, but you can enjoy the finished product, if you keep at it.  

Sometimes it's a good idea to drop in at their place unexpectedly with paper work for them to sign during the screening process.Aside from that the only thing lacking was your inspections.