If the bedroom windows are boarded up that’s a building code violation when it’s occupied.

They will coordinate with a title officer to get the survey and change the tax numbers; with a contractor to adapt the entrances or meet current codes; with everything to be seen on paper for approval.Location is what is going to determine your process steps.

Depending on when that building was originally created, you may be forced to bring other aspects of the building up to code which can drastically change your budget.

You need to check the building code, because most jurisdictions have limitations on what a minimum square footage for livability may be.

Here is some basic information for mortgagors: Texas Property Code Section 51 covers foreclosure law.

The only way you can operate one legally is in specific zoning codes that allow for such a thing. 

Negotiated with the bank, city code infractions, and owner to purchase the property.

Numbers look good but like @Matt Moreland said there will no doubt be some expenses to get the property up to code.

NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6),schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs,requirements and preferences of Buyer.Things I'd suggest including is investigation of services and feasibility of connection to public services specifically.

Does it have a small kitchen, in a flood zone, septic system, plastic CPCV plumbing, tree growing through gas line, modular home, foundation repair, auction listing, property code violations, past due taxes, murder or method house history, pit bull next door, corner house, finished and leaking basement?