The interior is decent and also requires updating .

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

If STR material participation requirements are no longer met, depreciation deductions may be limited, impacting how much you can offset against active income.

And I will state different jurisdictions have different rules, processes, expectations, etc.In my area you are required to have a permit to swap a water heater.

Verify income: Always make sure they make 3 times the money required monthly for rent.  

Short-term rentals of non-owner-occupied properties will also require a special use variance which is obtainable by starting with the completion of an application in the Zoning Department."

I used a private lendor to fund the re-hab (cash) and owner financed the purchase price (minus down payment) I have a bank account linked to Stessa and I see the cash deposit in the transaction tab. 

Deposit rent into checking account, transfer excess funds into brokerage account, make money. 

They didn’t completely destroy the house, I did keep most of their security deposit and used it for the repairs, along with some of our own cash.

However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.