I just bought a flip now for 70% ARV NOT minus repairs.

Quote from @Vaughan Moody: The contractor agreed to repair it for free. 

Then start following the procedures for your area. 

I would also send the insurance company this same letter and tell them they are going to be responsible for the cleaning and repair cost.

Simply put that money in your pocket and save it up for repairs. 

@Joe MichaelsI believe the new cap ex starts a 27.5 year clock at the time of repairs.

Legal Implications and RisksThere are a few legal and procedural risks to be aware of:Title and Zoning Issues: Confirm there are no restrictions tied to the property.

4. how do you estimate a repair?

Maintenance department (are there preventative maintenance procedures?)

But for many people, it is one of a number of sources of deal flow, to add to MLS listings, wholesalers, direct owner outreach, auction, etc.Assuming you are specifically talking about sheriff auctions, just make sure you familiarize yourself with the general procedures for the auction.