I thought it would be interesting to see what other creative suggestions this community has for out-of-state investors that can’t visit properties in-person to make sure they have an accurate picture of the property they are buying.

Is the FC number accurate ?

Comparing them to MLS properties is not an accurate comp.I agree today the property is worth at least as much as the state's appraised value (actually quite a bit more). 

Do a search and find them.Here is advice I have given numerous times:If you want to go about your real estate business using some arbitrary price per Sf for rehab calculations, be my guest, but good luck being accurate that way.Let’s say you have two identical homes on the same street, both 3 beds, 2 baths and 1500 sf single story, model matches.

Ultimately, it will be important to keep detailed records of the time you spend on various tasks and activities in order to accurately demonstrate that you are spending at least 51% of your time on real estate activities. 

It is very difficult to use a percentage that is even close to being accurate because of all the different items that might need to be fixed (the actual condition of the home), the costs of those different items, and even location.

I was speaking in generalities, given the post being discussed and the greater theme of it all does not lend to an in-depth discussion as to the finer functions and mechanics of all potential investment strategies and their case law to support or detract.And as this has fallen down a rabbit hole of details I will add, a LO is better understood in the more accurate language of Lease WITH Option. 

However, it has been our experience that many moms and pops price their property inappropriately so this formula is not always accurate.

The upside is definitely there.Your assessment of B-/C+ neighborhood is probably accurate, though I would lean more towards B-.  

If the property was not purchased under an entity it might be somewhat less cumbersome IF your records are accurate.