Looks like fixers are available there for less than $10 per sq. ft. 

Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks. 

12k rehab does not buy much..)Selling this type of property is a lot harder than one might think.

In Vegas you’re probably closer to $400k to get in SFR instead of a condo.

Of course, for some they would not want to do anything different than what they already are doing.

Is it more profitable than long term rentals?

.  :-)We’re doing just fine and we’re attracting more Californians than we need. 

Sometimes the long term capital gains are palatable and it may make sense for you to pay the tax rather than force a bad deal.

And start from a position of strength rather than getting into a property right before you go back to finish up school and have no income for a year.

This can have huge tax implications.Margins are an option but they are usually given at 50% of your portfolio (in this case 500k or even less after excluding 401k).In case if anyone's wondering why I'm doing this, it's because some buyers sell it much cheaper when it's a cash offer with 15-20 days closing.