During that incident it appears as though the roof pushed through the flooring and broke the joists/base holding up the floor (wooden frame house).This damage which is structural requires for the entire frame to be rebuilt.I have contacted a few contractors and the estimated cost is between $75k to $85k to rebuild the home to code.The downside is that this being a smaller city and rent being low, the properties in the area are selling for about $50k.I'm not sure if I could get a loan to rebuild and hold the property long term?...

Is there water/ fire damage?

But before they get it rented again, the copper thieves get there and rip and strip all plumbing, all wiring, destroy the AC condenser unit and all in all cause $10,000 in damage, which the owner needs to pay to get the house re rented and they often pay someone to put the house back together again to go into a quick placement of a new tenant and get back into scenario #1 or #2 again.Along about the time the other $15,000 in reserves run out, they decide they have to sell, but the house that they paid $15,000 for has all the damage to if from the first or second break in and is no only worth about $6,000 . . . so as one of the first reply's said . . .as a new investor going into an out of state market with $15,000 to buy a house  . . . at least in Kansas City . . . save yourself the heartache and head ache and set your money on fire.Or save it and do something else . . . . 

Professional dress.

It looks like there may be some water damage, so you'll need to figure out if there is where it is coming from.

If the damages go further than the $150 can cover, than you can dip into the initial deposite to help cover yourself as well. 

If you hope to expand down the road you will likely want the cash flow properties because they are self-sustaining and do not damage your debt to income like the typical class A property.

Has anyone ever acquired a severely distressed property (long neglected water damage, structural damage, mold, hoarders (and cat poop)) and lived to tell about it?  

Just with cashflow rentals as you are talking about: you could have bad tenants damage your property, and then you have to pay for repairs.  

That price included pumping, chemically treating, and ultimately collapsing the septic tank, directional boring 3/4 of the way around the house (.39 acre lot), two cleanouts installed, and he even removed a damaged cast iron stack pipe which had cracked in my foundation and updated it to PVC at no charge.I gave the overpriced $4,000 water equipment to a friend who had suffered from hard water and haven't had an issue with my new city water/sewer setup yet.Contact me if you'd like to chat further.