I highly recommend you partner with a experienced investor so you can learn how to do it properly from the beginning and don't leave yourself in a position that could cause you financial harm or damage your reputation. 

POS means you'll pay more to rehab the property to habitable condition than you actually paid for it.

For the most part college students are creatures of habit.  

And also if it not being permitted is anything to worry about as long as it is still safe and perfectly habitable.

Thanks everyone.I will have to look up the information on the BWI meetup as i have not seen anything for that yet maybe i can come this week depending on the @Ned CareyI am located right in the Canton area downtown @James A. i will have to check out REIA, i have been looking at REI Consulting groups houses they have been posting and running formulas i made in excel to get in the habit to see if it is worth the money or not.  

I agree that it is a skinny deal if the house absolutely requires rehab before occupancy but they way he made it sound is that the house is very much habitable, just outdated. 

What you resent will not benefit you, it actually harms you.

I have heard of people renovating basements so they can make it into a rental.Make sure when renovating a basement that it can meet Massachusetts Building Code and the Minimum standards of fitness for Human Habitation otherwise the tenant can take advantage and not pay rent. 

I am not saying to make a horrible purchase, but if he can get a couple hundred dollars of cash flow and the location is good, I don't see the harm buying a $140K property.

Something about the house may be making it not habitable or otherwise is scaring away lenders.