That would lessen the blow a bit.Seller financing may also interest you - you can hold a note upon the sale and spread out the CG tax hit by reporting the gain in installments when payments are received.

The biggest thing is to make sure that it is sloped properly and all the flashing and roof membrane is in good condition.

You can have a master meter connection point installed for water and sewer, and then jumpered while not being used.

If the lender doesn't perform in a timely manner, the buyer forfeits the escrow.The lender has been slow to respond on a few occassions but nothing like the week and a half it took for the seller to schedule the appriasal inspection... stating that the tenants needed to have proper notification.

You can take over the loan if it is done properly, keeping in mind that you have to do so properly to minimize the risk of the due on sale.

If you assume you've got to properly update a home for a nice neighborhood, how easy is it to spend $150k for a house less than 2000 square feet?  

You want to ensure the proper contingencies are there for you.

Councilperson Viagran stated, there were multiple code violations and work was performed without proper permits.  

When I purchased it, the broker told me that new "Holding tanks were installed" in the rear. which is false! 

The idea with your zoning currently is to allow only 1 dwelling unit per 5000 sq ft, with the few exceptions that Brian mentioned above, and with all of the proper setbacks.