If it still seems like a good deal, then maybe you can consider purchasing, and operate it as-is until the economic climate has changed a bit, and then put in the $$ to develop & upgrade for the long-term. 

Some light research  and reading through some blog posts on BP I can already tell this no easy in todays climate. 

PLEASE do your due diligence when inspecting foundations on your future homes, especially in wet climates.

Also, I have not considered other factors that can greatly affect your real return like climate (maintenance), construction, property age, local regulations, eviction cost and time, etc.Market Changes"The only constant in life is change."

I can not be sure from your vague description of the cracks but since you are in a cold climate area what you are most likely experiencing is truss heave.

Are climate controlled units are more popular at the east or west?

I used to sell larger apartment  buildings before moving to commercial retail so I know both asset classes pretty well.Most of the growth is happening in warm belt states and retirees flock to warmer climates.

Speaking to people who have a very good understanding of this market (sub $400k flips in Vancouver) anything on the MLS in the current climate, at very best has 5-10% room in it for a flip ( Demand exceeds supply at this price point).

Longview/Kelso area certainly has some opportunities in the current climate.

I don't know the environment in Texas well enough to help you with your climate (in my area the first concern is winterization so plumbing doesn't freeze).