I do not own the property, i am a newbie investor trying to understand what is needed to basically get a house under a lease with option to purchase contract and assign my position to someone who cant qualify for a loan due to there current position but but are willing to pay a little extra on this lease agreement because they are serious about picking up there credit score and at the end, actually closing on the house.

Eager to get into real-estate, I began to research and pick up anything I could learn about it.

Credit, experience and liquidity are the determining factors to be approved.

Your property had an adjusted cost basis when it was sold and that basis nets against your net sale to determine the tax liability.No replacement property = no 1031. 

Was feelin super down in the dumps today and this was the perfect pick-up.

Being that it will be my first investment property, I need help in determining if there will any hidden costs I may not know about that I will be responsible if I become its new owner.

I would suggest you learn about some strategies first before you pick the one you want to delve into.Attend local REIA meetings and connect with like-minded investors: http://www.biggerpockets.com/meetRead the Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingListen to the BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

@Shital Thakkar.... do you think it will pick back up?

After the inspection report came back, the house will need the following work (and this comes directly from the inspector): 1-The two oil-fired boilers must be professionally evaluated and serviced by a licensed HVAC technician to determine the life expectancy and the evaluation of the firebox as well as its efficiency.2-The asbestos in the basement must be professionally encapsulated or removed.3-Need to have a licensed plumber REPLACE the corroding electric water heater for the rear unit.4-All items listed in #8 that are asked to be replaced, should be professionally replaced or given appropriate credit for replacing by new owners.5-Need to have a licensed electrician examine, address and replace all wiring throughout the house and garage.

Once the renovations are completed and we get a tenant moved in, and lease signed the revenue will increase by approximately 37%, so I want to go back to the bank and get a new appraisal to determine a new value.