The existing walls and the routing of plumbing electric & HVAC ducts all need to be conducive to the plans.

Hi there, Right next to my investment property in Pensacola is an old abandoned eye sore of a house on a corner lot between two intersections. across the abandoned house is an open lot that has been rezoned recently for multi family and the owner has begun construction past week. buying out the abandoned property would help me on multi levels.

Thoughts so far:It seems like the FHA loan route is really the only way we'll be able to get into this market, and based on the numbers I've been running, hopefully some seller help with rate buydowns.

If you want to build a duplex on your own (ie hire someone), then I would go that route.  

I have done so many deals with investors trying to go this route and they make so many mistakes along the way that it costs them much more than they are "saving" by representing themselves and they have no idea that they've even lost. 

Don't go the hard money route. 

As other people mentioned:(1) all four sides of the house need to be downward sloping (sloping away from the house).If they're not, fix them... moving dirt is an easy fix.(2) rain gutters should be clean, be properly installed, and they need to route water away from the house foundation.(3) if you still have humidity in the basement, install humidity sensing fans that will auto turn on when humidity reaches a specified level (not expensive).

Hopefully this doesn't dampen your enthusiasm to help those in need and those working to resolve their substance use issues, but this is a VERY challenging route to go for someone with a lot of experience.

I would first suggest you educate as much as possible (The BP podcast and blogs are a great way) and then figure out what route you would like to take, buy and hold, flipping, wholesaling.  

@James Hodge I've known many investors who have gone this route.