But you are still going to be stuck with the need to replace HVAC, and water heater and polish up the interior.

Lowes and HD paint is OK for interior. 

We basically touched all interior surfaces with some sort of upgrade.

Judging by the photos of available houses for rent, they do a good job of maintaining their interiors, but I would not want to live next door to their dead lawn rentals. 

Thank you Thomas and mark as I just purchased my first property in Buffalo NY, I'm also looking for a good contractor.Exterior seems to be OK and no repair is required, but interior requires plenty of it :)Can anyone recommend on a good contractor in Buffalo NY?

I'm sure if you were to ask most investors at which point in the investment property lifecycle they break-even and truly start cash-flowing they either haven't figured that out or don't know how to calculate that number or what the true IRR on a property is going to be because they think once they close escrow with 20% down they are cash-flowing on day 1.When @Chris Seveney talks about the IRR for a long term buy-and-hold, I factor in a rehab at year 15 of a 30 year hold, whether it's due to wear and tear, or possible change in interior styles to remain competitive in the market.

Interior paint5.

If you feel like more children will cause more damage then just schedule more interior inspections.

Between the outside condition and the fact that it is up for a tax sale, I assume the interior is trashed. 

Here's what I know of the numbers: House is 4 bed/3 bath, 3100 sq ft$55k is owed to bring everything current (HOA, mortgage, fees)$8-12k for rehab - general cleaning, landscaping, 1500 sq ft of carpet, interior paint in some rooms$164k - current loan balance, $155k after bringing loan current, PITI is currently $1076 @ 3.5%$1800-1900 current rents in the areaIf the loan were called, I would be able to pay it off.