Would you buy this investment property in my situation?

[John Apple]

I found a decent single family investment property in suburban Philadelphia. The ARV is 260k and the purchase price is 185k. Estimated reno of 20k.

Here is the catch: 12k owed in utilities/taxes AND the owner (executor) wants 5k on the side for giving me the the deal because this is an estate sale (reverse mortgage). 

Also, the property has been vacant for over a year. I remember reading about a horror story where an investor purchased a vacant property where the pipes ran dry and they basically exploded when tenants moved in, causing a major headache. This would be a big concern of mine. 

My plan would be to move in for at least 6 months, since I'm moving out of my parents anyways and gradually do the renovations one by one (mostly cosmetic). Then, I would refinance it and rent it out. 

I have 35k in savings, so i would definitely be stretching it thin. However, from what i read, doing cosmetics first, then refinancing would give me enough capital to do the expensive reno's later on such as the roof and boiler. Maybe someone can clarify that one for me. 

I'm new to the investing scene so please go easy on me lol. 

[Phong Tran]

Regarding the horror story--unfortunately, that's a part of the business, and a risk you'd have to evaluate on yourself to see if it's manageable. If this was my specific situation, I'd likely pass on this opportunity since you'd running thin after the initial purchase. You always want cash reserve if anything were to happen, such as the busted pipes.

If you do decide to pass, there will always be more deals out there. You just have to keep grinding and keep looking!

Good luck!