You mentioned the roof is not in great condition right now.

Ive noticed that investing is gaining popularity for people my age, but most steer towards stocks/bonds.

@Wayne Brooks, @Kee Wilder, I feel like Batman--someone mentions my name on BP, and it's like shining the bat light into the heavens, I know to come help! 

My wife and I currently live in Denver but my parents are aging and we will soon move back to my home town just outside of the city.

And not to mention an interest rate of 11-12% compared to the sellers 5.

Birmingham has proven to be a big destination for young professionals with degrees - a group that  starts more businesses at a younger age than previous generations.

My guess is part of the basement is questionable, guess it depends on what was considered living space like others mentioned.

Age of roof/AC/electric/plumbing/? 

All the fees I mentioned are things that are needed just to maintain your license.

As Brian mentioned most lenders will require 10-15% of the purchase price as reserves be available in your IRA on date of purchase on top of the down-payment, which BTW is typically in the 40% range.