Offered me this deal:House is located in nicer KCMO suburbs and easily comps at 112-120kHouse in need of about 23k in updates/remodel (they would perform)Has current renter that has been there 15-17 years but would probably need to leave for rehab (lease is up early 2017)Offering me value purchase price of 83500 (over 10k less than comps minus repair cost)I would get portfolio loan with my local bank there (already approved) at 30% down ($25050)Would open a HELOC to perform the rehab (max $23k)Once complete, get a cash-out refi (with same bank), at 80% LTV of (hopefully) new value of 118k which would cash me out 24k -- enough to pay off the HELOCWould put back on the market at 120k, and if sold would net 25k+ on the deal, otherwise could continue with prior renter or find new renter (pretty easy in this area)Obviously quite a few things would have to go right including the reappraisal, but the comps look pretty easy to obtain that new value.  

As to septic, have a good evaluation and pumping done prior to closing.

There is less competition there and you do not need any  prior experience."

The seller needs to take care of this prior to close.  

Prior to inspection, I don't see a cap-ex coming soon.

@Cam CoplinHonestly, we've been concerned about this whole process regarding our security deposit because LL informed us that we'd be accountable for damages that occurred prior to our lease.

This pissed the seller off, but he was willing to sell me the property at my 1st offer (the year prior).  

(Please trust me on this... the first house I bought at a tax sale looked great on google.... but was taken down by the city the week prior.... anyone want a vacant lot in NE OKC?

Many times some of the grinders (companies on the take) try to make the earnest money deposit non-refundable PRIOR to the inspections.  

Use someone who represents you and your interests and make sure any title issues are resolved prior to or concomitant with closing.