Working against me is original report from 2012 was done by "most highly regarded " structural engineer in Berkeley.

Looking at listing may not need full rehab, new roof and water heater done, 3br in neighbor run 900 to 1000, rehab for low maintenance, try to buy as low as you can , look at comps, probably could go in as low as 38-42 with good agent and stress as is, maybe a few agents here to help, get one to give you good numbers not listing agent numbers , street is a nice one for area, not much back yard or parking but nice front, before you close make sure vacant  contingent, if numbers work I would do it, the are predicting an abundance of rentals avail next year with building craze but keeping expense low you should be safe, remember don't rehab as if you are living there, think durable and repaintable, number should go into systems and structure first, elect,heat,walls, windows,floors,plumbing, if you use a contractor go with one you know or work with someone in area to keep an eye on progress, good luck at least you know some of the history of the property

I would have all my docs. run by the attorney, plus have an escrow company for collecting rent and paying the existing mortgage (be sure r.e. taxes are included with that payment also) so it doesn't fall into foreclosure.

I run both the Illinois Real Estate Investors Association and the Missouri REIA.

Run...don't walk...away.5 - "Based on my analysis, I think the FMV for a 2/1 like this is closer to 35k."  

Run an ad in the paper ..."

I think you should reverse engineer what you want to do.

Now I'm debating whether to paint over it with a white epoxy floor paint or put engineered hardwood over the top.  

There are a lot of groups that you can get involved with in terms of investing; @David Torres runs a group on Wednesday nights that you'll want to attend as he does a great job.  

I'm attempting to run my numbers with the variable of raising rent each year.