I've seen way too many out of state investors get burned by trusting the wholesaler's numbers.

You will burn contractors out and get blacklisted. 

Second what if it is the tenants fault that they can no longer live in the house, like burning it down?

I've heard a saying in my real estate learning, "Pigs get fat, hogs get slaughtered".

@Cassidy Burns congratulations!

Sure, they're cash flowing for a few years and feeling like geniuses (I did the same), but then those big expenses creep in and after 7-10 years, and the next thing they know they're staring a nice big fat rehab bill that eats up all that cash flow from the previous years. 

It was rusted had open spots in the panel and moisture damage was present the main wire had what appears to be burn damage on it coming from outside of the box. 

And as I burn through 195 podcast episodes I've learned a whole bunch of what can be done to a house and what cannot be done to a house and I would still like to know the opinions of BP community in the direction that I'm thinking this house could go.

I'm in Midland and the returns can be AWESOME, but it is hard to find that great deal and when things bust it can burn you. 

Judging from the numbers only if this were in Alabama that would be a burned-out mess of a home that you would now be responsible for demolishing.