I fear that my investment would lose a lot of its value. 

Per the article, the term "Seriously underwater" is defined as 25% or more owed above the total estimated market value of the property; Among zip codes with at least 2,000 homes with mortgages.I'll let you in BP Nation decide if this potential financial loan distress would make the Rocky Mount area more or less attractive for a real estate investor.

Knowing what type of value it will trade for when stabilized, to make sure you have appreciation for your efforts.  

Current value and mortgage details?

Especially since we've all heard of horror stories involving tearing everything apart to have it inspected, and re done.The other thing I have heard is "it will only be valued as a 2 bedroom 1 bathroom" even though the appraiser will physically see a 3rd bedroom and an additional 3/4 bathroom.

Estimated value, credit, type of property? 

I'm also hoping to find something that is ideally under market value that needs cosmetic upgrading so there is some value add.

The maximum amount of the energy package that can be added to the borrower’s regular FHA loan amount is the lesser of:· A cost-effective improvements to be made (energy package) based on the home energy assessment; or· the lesser of 5 percent of:the Adjusted Value;115 percent of the median area price of a Single Family dwelling; or150 percent of the national conforming mortgage limit.An FHA-approved lender can access FHA’s EEM Calculator to determine the dollar maximum amount that a borrower can finance for energy improvements.

I see there is value there I buy it.

I like to see 2%+ $/sf/mo appreciation & above $3/sf/mo on avg, indicates it's a higher-valued & safer market to put ~$1.5M in equity.So you can definitely build these out, but beware it'll mostly be something you glance at and rarely get something actionable from.