And what type of things should I be on the lookout for as potential deal breakers?

The seller's agent has been receiving non-stop calls for this property with offers $20K+ then my own, and have been doing my research on the area --- so I know there is great potential here.

@Shane Hedeen Much appreciated@Tony SanFilippo We won't touch anything with a potential 10k profit.

Your 40k can mean a completely paid off house in one neighborhood that might potentially cash flow 2% per month.

Put these examples in a nice packet to present to a potential money guy. 

Leaving plenty of room for rehabbers like yourself to do what you do and still make a large profit.I would like to add you to my buyers list and potentially work together in the future.

It has great potential but is currently a distressed property, owners divorced and walked out. 

Stereotyping can cause problems and potentially a lawsuit.

Going to a potential mentor with a deal is a lot better than asking them to be your mentor. 

Look at city and state rankings, but also drill down to the specific neighborhood or city region, as depending on how big the market is and where the employment opportunities are centered, potential buyers may have to split the difference between the best possible school and the best possible commute.