On paper, that's a 88% return before depreciation (can't depreciate land, but you can do a cost seg on the septic and other improvements), appreciation, etc. 

Are you a hands-on type that can make improvements to a home or prefer to contract out work?

I have heard vented units don't dry as effectively but haven't heard any complaints from my tenants and believe the technology continues to improve.

Do you have cash reserves for capital expenses and improvements? 

The only other option that comes to mind is to make the improvements and try to achieve favorable rental rates to push the story that 2 BR homes rent for a premium because its unique.

I was a SWO for 8 years, and the best thing I did to improve my financial life was real estate investing. 

Paying a reasonable amount to assist in one's life improvement is not a bad thing, just don't do nothing else thinking this one thing is the 'cats pajamas' as DG likes to say.

I do have a very specific and curated buy box, so I know what i'm looking for in terms of zoning, lot size, buildable/improvable sqft, location, etc.With that being said, do you still not recommend going through sheriff sales?

They will improve, but never "pop."

With a recast, my monthly payment could drop, improving cash flow.3.