While they often require some level of repair or renovation, the potential for significant returns makes them an attractive option for many investors.Why Invest in Distressed Properties in Phoenix?

The standard legal procedure, as far as I understand in NC is the landlord must make reasonable effort to re-rent the property (which I will), and any vacant time till new tenants are found must be paid by previous tenants.

Ok, just wanted to make sure this was normal procedure. 

Some may have very small thresholds for repair holdbacks on purchases but this is typically limited to make ready items not to exceed $2,500 in costs to cure.

The rules and payment standards vary significantly from one area to another, so familiarizing yourself with the local housing authority's procedures is key.

I recommend you budget 5% of the gross rent (for the whole place, even what the rent would be if you were living in it as a tenant) for repairs and 5% for capital expenditures.

Does it need repairs? 

Regardless of how you financed your rental property, you can generally deduct repairs and take advantage of depreciation schedules.

Repair costs would be $150k.

Until you have to do a major repair like a roof.