I would be a bit concerned about the area due to the low rents and price, but strictly based on the numbers it doesn't look bad.

If you do a straight subject to, they won't have any standing.That being said, a lease does give a tenant some rights, however the "equitable interest' I believe you are referring to will not give you much standing in court if the deal goes bad, no matter how much in repairs you did. 

It's fantastic that you're working hard on the side, and two months working after hours isn't bad at all!

Which is a 9.6% CoC return, which is not a bad return.

Do you have the cash reserves if something bad happens or you have to evict because the tenant isn't paying? 

A sale will extend the time to get the house boarded up or renovated.I am not familiar with Probates and it seems they have let this house get into a bad position.

Whoa, that's one bad check from going the wrong direction. 3-4% Cash on Cash, I'll be honest I won't even look at something under 10, my wife won't even look at something I show her if its under 15%.

I agree wholeheartedly with the way you are doing your calculations and taking everything into consideration.I just want everyone else to know that just because you use a sophisticated calculation like the IRR, it doesn't mean you can't treat it the same way as you the majority of most Investors on this Blog does which is assume that the Cash Flow for the 1st year is exactly the cash flow for the years after for life!

Maybe you had a bad experience with a terrible tenant. 

Im happy to sayThe area overall is like any other, good - bad - "no go" zones.