The house is a two story brick traditional home. 

I mean there have been a few people here and there that I have spoken with but I've also read where traditional lenders and even some real estate agents are less inclined to work with new real estate investors, especially when looking at smaller less expensive properties starting out.

Be sure that you letter talks about how much easier it is to sell their home to you - rather than the traditional realtor route.

What items should i be looking at, checking for in my due diligence before closing? 

@Sean HarrisonIf you're self-employed, you might be eligible for a Solo 401k, which offers many benefits over a self-directed IRA: Compared to an IRA, Solo 401k contribution limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)I'd recommend you reach out to a few providers who regularly post here on BP to get a better understanding of your options.

However, I dont know how RoofStock's star rating system compares to the traditional A-F system that most investment literature uses.

Geoff,Your numbers look good, just a couple of items which can go south and it’s best to be prepared; are your construction numbers solid - do you have written bids from contractors?  

Tried to get traditional financing for the house but got denied due to not having any income.

We signed a contract with the seller that stated " Seller to pay for repair costs for the items discovered via inspection" .

The big ticket items that you don't replace now will eventually need to the repaired or replaced if you hold the property long enough.