Best way to find ugly house that you can move in a fixup?

[Jeffery M Chan]

Hi BP, I've been trying to look for houses that are dated/have problems in a decent neighborhood to make my primary residence and put in some sweat equity. I am looking to get a conventional loan with 20% down to go with the property. Generally speaking, (market price) - (market price 20%)  - (fixing cost) is my purchase price target.  However,  I'm having a hard time finding these houses. Am I going in the wrong direction? I either find houses that (1) would not pass appraisal/inspection and would require all cash or (2) doesn't have enough problems to create the sweat equity. 

I've been trying to work with wholesalers or realtors with pocket listings so far, driving for dollars, Craigslist, etc. I'm working with 3 real estate agents at the moment.I'm also trying to save more for a foreclosure home as another option. I'm seeking some success stories here and looking for everyone's general thoughts and opinions.