A previous tenant reported the property to the local government about six months ago for possible lead paint.

(Updating the bathroom, ripping up old carpet, putting down plank vinyl flooring, paint, updated appliances etc.

It seems like a solid basic house : slab, block walls, single story, post-lead paint construction, and town water (wells are a Pita).

Home was built in 1932 3 bed 1 bath full basement needs work of course bad neighborhood 1 car garage its a craftsman style home ugly yellow paint on exterior....SEV is 72,000.00....comps range from 39,000.00 to 99,000.00 assuming all 20,000.00 is used to rehab my fear is it will sell for 45,000.00 but not much more and I won't make anything on the deal?!

Is my understanding correct that if they choose to replace it, they must abide by useful life calculations (its 4 + years old)?  

The bad: Needs updated baths, kitchens, refinished floors, paint, deck and landscaping at a minimum, basement is gross. 

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bpThe second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

If they choose not to sign then can I ask them to leave?

Just know what the pitfalls of having a license vs not and then choose the path that looks best for you :)

I might just have them do foundation/framing/mechanicals/etc... and I'll finish it off with drywall, paint, tile, cabinets, etc...