The house needs some mold remediation and cosmetics but otherwise should be a great deal.Its a four bedroom with three small bedrooms upstairs and the master in the basement.  

These items combined with routine maintenance could quickly eat away the $200 in cash flow after PITI

Its currently occupied and the tenant is on housing(so the rent is all but certain) and pays $750/mnth. there are no repairs needed cosmetic or structural...

This unit is deleaded and in fairly good shape, beyond some external cosmetics, but We still need to do more due diligence on the property with a more thorough inspection.

Needs just cosmetic updating whenever we decide to rehab - figure if we spent $10-15k on it we'll have a darn nice house.  5 bdrm 3 bath.  

Hey Deborah Cavallaro The developers whom I work with on the Westside of LA (excluding complex Geo) average about $200-300/SF for ground up new build, and about $70+/SF for cosmetic (move a few walls + new drywall, kitchen, baths, flooring, etc...).

I have known people who allow the sellers to fix certain things, only to find out later that though the repairs looked cosmetically correct, they were not.  

Rental grade cosmetic rehab- paint, carpet to go, hardwood underneath so polishing ,  install window/central AC and/or fencing depends on the rehab budget. roof, windows appears new. furnace, hot water heater in good condition, no fencing or central AC, basement and foundation in good condition (little moisture there though) waiting on contractor rehab estimate.Rent range - $695-750 . $750 if install central AC and fencing.

I have heard a few horror stories but we are very interested in this house, the price is great and it would make a good rental (or flip) property. it is close to home and requires mostly cosmetic fixes.

They have plausible deniability, because "how could I have known it was just a quick cosmetic hack by someone that isn't a licensed contractor?