Here's my opportunity...If you were me would you take it

[Mormon Red Death]

Currently My wife, daughter and arriving son (first part of August) live in a 3 bedroom ranch 1350 sq feet with an unfinished basement. in a middle class detroit metro neighborhood that has an above ground pool and is worth about 175 - 180k. My house is about 2 miles from my in laws who are empty nesters and who both work a lot. Since my daughter is the only grandkid in michigan we spend a lot of time with my inlaws and are over there a lot (my closest family is in metro toronto).

With that in mind ... A house was just foreclosed on two houses down from my inlaws. Its 1600 sq feet, better neighborhood , schools etc... It has a finished basement and two baths (my house now only has 1). If the house was being sold at good condition it could probably get 200k maybe more. The yard definitely needs work and we don't know about the inside. So here are my questions:

1. What price on a foreclosure do you think I could get it for?.... I am thinking in the range of 135 - 160 depending on how the inside looks the people who lived there before might have trashed it. Does my range seem reasonable?

2. Anybody live 2 doors down from their parents or inlaws?

3. What is the highest price I could possibly by this foreclosed home for to make it a good deal?

4. Lets say I get the house at 150k... Can I get a Home equity loan up to 200k for improvements and repairs?