There is still a lot to learn but sounds like you are on the right track. 

Does this sound right?

I have about $5k in a credit card and another $5k in a home improvement loan because I had to replace my AC condenser after purchasing my primary last year.

And what is your price point, and it sounds as if you're OK with slight to moderate rehab, is that correct?

It sounds intriguing and like it could be a another good source from homes since the MLS has been pretty dry lately/hard to make houses pencil out for flips.Is buying from auctions a good idea?

Hi Victor,It sounds like a big project!

Sounds like a good deal, congrats Scott!

What gets expensive is replacing a deteriorated side sewer from the house to the street, when they use the cleanouts and find out what's going on down there. 

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

Sounds like the property is in Memphis, there are a ton of PM companies out there who will do this for you.