Overall, does anyone have any experience with this type of undertaking?

Thats a big task and in my opinion a little too big of a project that I wanted to undertake for my first property.I have been looking for more good deals in the area but I keep getting agents showing me properties that are already at the max for the neighborhood in terms of appreciation and I wanted to find something that was below marked value that I could put some sweat equity and decent rehab into.

Inquirers must seek the advice of their own legal counsel prior to undertaking any course of action related to this inquiry.

But you have to acknowledge the complexity of projects and the risk that you have to undertake in every investment.

If you don't need to sell right away you need to consider holding costs and redecorating costs if you rent. and it will take a while to find tenant. 

I give new tenants a guarantee of rent rate to stay the same for 6 months and if they terminate prior to 6 months I charge a $250.00 redecorating fee off their security deposit. and  it has worked I seldom have had anyone stay less than a year and average is 2-4 years...

The bottomline, @Leo Semenov, is that you have to decide what how much risk you are willing to undertake and whether you have other viable options.This is a great place to learn about all aspects of REI so use the resources here and you'll be well on your way.  

Never saw a rental property that didn't need redecorating and refurbishment.What is there motivation to sell if they have a good property with a paying tenant?

A new roof is an expensive venture for a lender to undertake, if the plan is to take a loss (short sale usually connotes a lender taking loss on its position).

Central air is a big, messy undertaking in an existing property.