So many better options. 

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

House gets foreclosed on when a borrower is not paying its debt obligations - typically its mortgage.buying foreclosures is not for the faint of heart as you have no idea of the interior of these properties lastly while it can be beneficial also realize if there are a lot in an area those homes are the new comps when trying to sell so it lowers home values in an area 

When my loan was not going to close, it was one of the options that my broker and lender told me about and actually referred me to for a conversation.

-Max LTARV is typically 75% -Is a 12-24 Month Interest-only loan with a balloon payment - Minimum credit score is typically 600 -Interest on the Rehab is usually paid per the total drawn amount. 

Insurance typically covers only the directly damaged area, not undamaged flooring, even if it's continuous.

Feel free to DM me if you’d like to connect and discuss options further!

I believe it to be a little Southern California hidden treasure for cashflow, mainly class C but if you know what you are doing its a really good option to invest locally in CA with decent returns.

Is spending thousands on a sprinkler system worth it or do I have other options? 

I think build to rent is a great option if you can get cheap enough land to make it worth it.