I came across an opportunity on a fsbo that needs TLC, good bones in a very nice area...

If it’s worth “just” $825k, then there is not enough ‘meat on the bone’ to be able to get a hard money loan for the down payment, rehab, float you for long enough to be able to flip it, etc. 

The home is probably worth 200K (ARV) The foreclosure judgment is at 126K (so there is some meat on the bone) HOA lien ($1500) IRS Lien (130K)Based on this info, would you agree that the IRS Lien is junior to the mortgage?

While benefiting from a great location and solid bones, and a good rental history, there is no denying that the dearth of inventory and the general frothiness of the real estate market must have played a role. 

I would have a contractor walk around the property though to make sure that the bones are good and you don't have any unexpected expenses.

We'd like to make some money as the house we're looking at has good bones, but looks like the 70s walking in. 

Similarly banks dont like to do commercial loans on properties that are less than 200k (this varies by the bank) because there isnt enough meat on the bone for them to make any money in the form of Principal and interest on the small loan.

@Ben DavisThey should be like Scotty toilet tissue Rough ,tough ,and won’t take $&@t off anyone

I completely gutted it down to the bare bones and replaced everything pretty much. 

I've tried the foam board in other applications-could have used tissue paper instead.