This is sounding like a no-brainer to me.

@Yair ZarmonYou will find that most desirable markets will be "saturated", there is no hidden gem like we all wish there would be!

The estimated repair cost is a few thousand dollars.Over the past few months, I’ve been in discussions with my neighbor, trying to have their insurance cover the repairs.

But, there will be closing costs you have to add in.

No bathrooms or carpets.  

You might only have 10% equity, but little or no money in the deal AND you have a rehabbed house that will not need much capital expenditure for quite a while.Just think if you did this with 20 houses over the next 20 or 30 years.

I agree with @Charles Carillo about offering to help with moving costs (similar to a cash for keys).The other consideration is to give them an option to stay on at a higher rent without renovation costs. 

The apartment sale price 275k, loan amount 261k with 19k grant, no money out of pocket. after rehab rent 1850-2k month for location. my home 4 bd 2.5 b worth 217-230k will rent for 1800-2k month.

My all in cost for purchase, auction fees/taxes, and expected rehab is 320K.

No leaks, no issues EVER.