It's a great SFH in an A area (Olathe, KS), inspection report came back very clean, everything looked great.

Unless you plan on doing all the work yourself, you should factor in termite inspection/prevention, possible tree removal/trimming, clearing gutters to prevent leaks, sending contractors to fix things that break, painting unit after each tenant, changing locks after each tenant, cleaning, appliance maintenance etc. 

How should you go about balancing between affordable and enough to cover repairs/cleaning?

Background check is clean. 

@Julie McCoy My cleaning lady refuses to do this job. 

My question is, can I make improvements with the proceeds of the old house to the vacation rental including new floors, carpets, and furniture?

So all inspections signed off and headed down the path to commitment from bank when they are let in to measure for carpet....... 

I believe market can support ARV of 385k now if the interior is up to par with modern standards and exterior looks clean. 

@Cassi Justiz Thanks for the recommendation.I have to clean up the 400+ apps on my iPhone and make a page of apps just for REI!

what Christopher says is true to some extent, private money lenders will look at a recent appraisal especially when you have cleaned up the foreclosure and if its rented.