In order to answer your questions properly more details are required. What section of West Haven is the property located? While it is close to the water, certain areas are more desirable than other. Additionally, I would need to know the current condition of the property and where you intend to apply the $60k. You also want a market analysis using the details of the finished home. Please also ensure that you have sufficient funds to pay the mortgage during the rehab. The construction usually takes longer than originally calculated and this is where most people get into trouble.
Personally, I have built a house from foundation to completion, and I understand all of the factors and details associated with home construction.
It sounds as though you may be working with an agent to have found this home who may assist you with this detail. If not, I am happy to share my experience with you, and answer any questions that you may have. You may reach me at 203-536-8665 or firstname.lastname@example.org.
I wish you well with your project.