All the soft costs plus impact taxes. 

While I have not gone through the process for a PA Sheriff Sale purchase, if the borrower had a free and clear property, I would lend against that free and clear property and the borrower could use those funds at a sheriff sale.   

Feel free to reach out if you have any questions

For example, if a partner and I split the acquisition/rehab costs, do we each get a 50% stake in the equity of the property? 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

You are missing the following:  capital improvements, working capital, closing costs, pre-payments, and anything else you will need to pay in advance.You are missing several income and expense lines. 

If you have any specific questions or need funding, feel free to reach out.

These neighborhoods are usually less risky than C Class areas, but showing solid comps, market trends, and your plan for value-add improvements will boost lender confidence.If you need any help with financing options, structuring deals, or putting together proposals, feel free to reach out→ I'd be happy to assist!

Unfortunately, this was likely an inevitable outcome and cost over a multiple decade period of risk exposure...along with not getting appraisal value for the illegal unit when you sell.

It's a standard cost of doing business for them.