Very useful advice @Duncan TaylorSince this is definitely not legal advice I would be interested in hearing from other seasoned investors about what they have done.The guru scene is all about layering entities, yet at a recent Meet Up I attended everyone looked at me like I had just salted a light bulb when I asked who does that.

Knowing this will put you light years ahead of the local competition.

It needs quite a bit of work (completely new roof, fence, landscaping, interior...), but if the current owner is reasonable and I can get it for a price low enough it would be a great deal for a great cash flowing property.

Is anybody familiar with a situation like this and can shine some light?

I don't like light rehabs.

Specifically, go with LED bulbs(not the lousy ones from Ace hardware, but good ones with nice light quality,) and a .8 gallon per flush toilet(from Home Depot- Niagara Stealth) and a 1.75 gpm showerhead.

Would love to hear from someone local who can shed some light on this!

In many European countries (not sure about Holland) you will find the house will be bare on moving in so you will need to buy stoves, curtain rails, carpets, light fittings...you name it.

They probably did a light rehab on it and are now trying to sell it for more than 2x what they paid.  

I'll try not to be a Debbie downer but try to shed some light on why the numbers might need some work.Purchasing a house for 40k that is listed for 130k is HIGHLY unlikely.