B is going through an eviction) The realtor said the main issue is whoever did the initial renovations cut a lot of corners and it shows when you go to the property, it looks perfect in pictures but in person not so much.

Does the PM/AM just keep switching vendors to see what they can get away with as times get tough and vendors cut off services?   

Unfortunately, builders and contractors make mistakes all the time through human error, cutting corners, or hiring the wrong subcontractors for the job.

Rather than cut the price and show less earnings for sales, they simply take it in the expense end and give you free or $1 meals in addition to your normal order.

Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away.

So maintenance and cap-x cuts a LOT deeper on those low $ performing properties. 

I looked at one where I feel comfortable bidding 59% of what HUD is asking due to the water damage in the basement (I couldnt see mold but I'm pretty sensitive to it and could definitely smell it -- was very strong and I suffered from some congestion for 2-3 hours after being in the basement)HUD has not disclosed the mold (unsure if the PM company missed it or their inspections were performed before the basement flooded -- guessing it only got 1-2" of water in it) however it was in the house long enough the humidity warped some of the flooring upstairs and warped the door going down to the basement -- however I did not see or smell any signs of mold upstairs so feel for the most part comfortable buying the house.Am I wasting my time submitting a bid 59% of what HUD is asking?  

How do they know their investment will not be wasted?

Knowing how much time do you have available will be just as important.Maybe you can cut a few things and create a budget for your business. 

., you might be cutting it way too close to really do anything. 15k is the bare minimum I suggest for reserves or oh no money on any project so that doesn't leave you a ton left to work with.As @Glenn Banks said, 203k is probably your best option because it's an FHA loan and you can do low money down and the reno is baked in, but the reno is complicated.