After doing an actual inspection; it's going to need about 60K in work.

Don't know how you would expect anyone to give an estimate with seeing inside photos and an inspection.

Sometimes you can arrange for a city inspector to come out and inspect your home.

:)  Alternatively, take the the inspections and viewing clause out of it and offer even less.  

They ask for all my RE owned, name and account info for all my assests, all my other mortgages, etc.They are asking for %20 down, plus 2 points, plus a 1200 "application fee" for documents and inspection, @ 12% for 12 months.Is there something wrong here?

Inspection shows it needs very minor repairs.

I haven't had the place inspected yet or anything but here are my calculations, please let me know if it looks good or not worth it.Purchase Price120,000.00Down Payment12,000.00Rehab Cost5,000.00 (estimating this just in case)All In Total17,000.00Rent1,400.00Tax166.00Insurance100.00Management140.00Vacancy 7%98.00Repair 5%70.00Mortgage550.00HOA0.00PMI50.00Water40.00Total Expenses1,214.00Cash Flow186.00Cash on Cash13.13%

I'd rather not specify amounts here, but it makes great bar stories talking about walking around the bronx at 2 in the afternoon with 60k in my messenger bag.City Agencies: Like getting your buildings inspected?

My plan was to get the house inspected and use that as a negotiating tool to satisfy a lower price because the family received the house through and death and just want to cash out quickly.

If the house is broken, you won't be able to just paint it and expect it to pass.When I last had an FHA 203k inspection done (which was five years ago), I believe the inspection only cost me $350.