However, my house is totally paid off and with the extra money i inherited, i would like to make money with it and start investing in rental properties.

The advantage is that the holding cost would just be the Reno money and no mortgage,insurance or utilities.

Corrected utility billings, implemented conservation efforts, such as replacing all exterior light fixtures, tightened policies and increased curb appeal and remodeled office & interiors.

I seems as simple as telling the seller I am going to add 40K rehab budget to a 60K purchase price so that my purchase shows a total of 100K.

It has a shady sale history; there are taxes and utility bills due on the property.I would pass, imho.

“Your Honor, he told me I could stay for free as long as I paid the utilities”.

You can totally cut costs and still get a high end feel. 

This was a total rehab of a cape into a colonial. 

Biggest X factor is when we did our walkthrough, we noticed basement ( unfinished) is totally flooded with sitting water ( too high to walk through) and it seems like the water has been sitting there for months.

Pay off HELOC (23K after closing costs of a total 55K available) by next Spring with personal income.