DIY Rehab--where to start?

[Dojo Kempin]

So I'm new here and stepping out on a (relatively) small scale.

I've been looking at the distressed properties around me, thinking of my retirement, and basically said, "hey, why not build some sweat equity on one of these wrecks." I bought a small REO for cash that will need fairly extensive work. (Closing soon.) I'm planning to work on it part time this summer, and for however long I need to get it ready. (Not sure yet whether to go resale or rental.)

The question, for those of you who have more experience, is simply this: Where do you start? I don't mean on my specific property, but for those who do extensive rehabs--particularly when you do much of the work for yourself--do you usually have a plan of attack? Are there certain things that experience has taught you to do first, or to avoid?

Bear in mind that this is my first investment property and I am excited. I need to find what is worth doing and what will not pay off. My initial thought is to get it rent-worthy and put a tenant in it--the rental market is very good here--but it is a small house a few miles from town with a large wooded lot. Maybe it would be better to renovate for resale.

Anyway, I love this forum and value the wisdom of the experienced. What have you done?