I would say the house could use newer appliances and a newer tub along with fresh paint job and hardwood floor refinished.

OUCH, so the inspection revealed that the contractor for Fannie Mae painted over a great deal of rot in the siding of the building.

I am starting fresh and looking to do property rehab and flip.

If the populations you are working from need be trimmed down then you would apply filters based on your own internal criteria from whatever data points (those given or those revealed as a function of diligence) you have.

Shortly after my neighbor revealed that they intended to sale.

I much rather start fresh with new tenants than have to deal with this conflict.

My agent called the seller's agent who insisted is was built in 85, but the inspector was adamant it was not 80's construction and some records digging by my agent's office revealed the truth.

No idea what prices are like at different times of the year where you're looking, but a tired building in my target area (very close to a major college) definitely sell at a discount from the fresh/nice looking ones.

You could do something like offer to buy on terms at around $76K-$81K and just sell it at around $99k with some fresh paint and touch ups. at $35k less any Realtor would would consider there client to buy at that price point.

Since you want to do buy-and-hold, listen to my podcast interview as I reveal my worst investing mistake (I bought a 36-unit apartment building) and how I turned it around (by buying a 100+ unit apartment complex!).