Distressed houses?

[Rick Reed]

Generally speaking, what is a "distressed" house? Whenever I hear this term I think of something that sells for around $30k and needs about as much in repairs (if not more) just to be rent ready.

What major repairs should I expect to make? I guess I'm asking what the difference is between a total rebuild/gut job vs a distressed house.

Can I assume a distressed house is something that needs a lot of cosmetic work, but overall, should have no structural damage?

I'm also trying to get a feel for what a realtor means when they say they specialize in distressed house sales, and what I should expect to be shown when I say I am looking for a distressed houses.

Thanks in advance!