I have been really digging deep into the area's statistics and I drive through it every day on my way to work.Last week my business partner and I found what we thought was a great rehab project in the area and in our price range and we went and checked it out with a local agent...well unfortunately, we decided it was too much work for our first deal, so we kept looking.This week I've had my eye on a property but I would really appreciate some experienced guidance first.The property is listed for $51K with 2 beds and 1 bath at nearly 700 sq ft and valued at  $61K.

I send in a simple real estate contract to secure the deal, drag my gf out of her bed, and we showed up at the property after closing with a broom and the trash canFancy is sexy!

I went there 2:00 in the afternoon and she was laying drunk, on Joan's bed with a bottle of Vodka, sleeping with out a care in the world.

I live in a very expensive area - the median price for a 2 bed/1 bath is $500,000.

Haven't seen interior yet except peering thru windows but estimating about $35,000 to uncover and refinish hardwood floors, replace some windows, paint everything inside, lite kitchen updates, some new appliances, and light bathroom updates...budgeting to replace one boiler immediately.It's up/down 3 bed 1 bath on each floor, would rent for about $1400 per side in as/is condition, but could fetch 1750 per side if updated.  

Its 3 bed 1bath units, that currently rent for 575 a side, owner pays water/sewer, tenant pays everything else. about 900 sq ft a side.

All 1-bed units. 

Another one on the other end of the spectrum is if a property is passed to kids, the taxable value is stepped up to current values at time of passing, so a 30k place that was held for 30 years and is worth 280k could have had $0 estate tax and then sold for $0 capital gains but if sold or transferred before death would have tax on 280-30=250k, ouch!

Are they gaining beds and/or baths?  

I did a search for 3 beds across 4 cities in the area and was really confused when only one city had 3 bedroom properties and bigger.