He is a mechanic.

For the property I will be checking out mechanicals, structure, piping types, drain piping, HVAC system, overall property condition, and work needed. 

They require move-in ready and solid mechanicals. 

What's the age of roof and mechanicals?

I am also in the process of opening my own mobile mechanic business, but again we won’t have two years of owning that business under our belt.

A lot of hvac systems use flex ducting and those are pretty easy to T off of since no sheet metal work is required.You will want to do some more research as the county may not consider your conversion a 4th bedroom unless permits have been pulled for electrical and/or mechanical.

The problem is there is language in the contract addendum that says the bank is not responsible for any mechanics lien, materials lien, or tax liens which were present before the bank gained possession.

There are 100 other issues that could come up with this arrangement (e.g. premise liability during rehab, mechanic liens, construction delays that lead to further holding costs, etc.).

Here is the link to the listing on auction.com 26 Delwood Ave, Middletown, CT, 06457, USA (auction.com)I spent time researching this property over the Weekend and identified the following issues1) The current occupants have filed for bankruptcy which makes eviction virtually impossible.2) The property is on the Town's Blight list and will require a near immediate cleanup after transfer of title as the fines continue to grow3) The roof has a major leak and none of the mechanicals in the house are in working order.4) The occupants have indicated they have no where to go and will be destructive if forced to leave.Why would anyone bid$155K on this property? 

Think of it like a mechanic in a way...they can all change your oil but some will treat you different, or get it done faster, and most will be around the same rate on a loan like this.