Check all the CapEx components to the property and have a good contractor with you if possible.3) Schedule a cadence for communication and updates on the house, even if progress was minimal during any given week.4) Demand quality and coach your contractor.

Staying outside of the city limits or being on the outskirts of the city would likely be your best bet.

Your better bet is to find a long-term tenant to rent a room or more depending on how many additional bedrooms you have. 

I bet in the example you gave, if you had a mortgage on the property, the lender's title would have covered the cost of fixing the problem and helped avoid foreclosure.  

And within that realm, STRs/Airbnb are often your best bet for cash flow.

Best bet starting out is to partner with a GP who can bring some experience/track record to the table.

Your best bet to learn wholesaling is to go work for a wholesaler.

While buying existing property or pre-construction is a pretty safe bet (assuming the developer is honest and properly financed like everywhere else of course), developing is another story.

Some allow you to upload a picture of the progress without having an inspector step into your project, some require physical inspections. 

BTW, that also gives me a bit of insight into their progress as they pack up and leave, and any damage they may have caused.