There are two foundational questions every investor needs to answer that will define the approach they take.  

That will be your roof, foundation, support structures and HVAC.

So I guess my question is; is this a good foundation to go by and if not then what would be a good ratio?

He found a large verticals crack visible on the exterior basement wall, where the foundation has shifted from water due to downspouts missing.

There are also areas within Denver metro where properties can still be found at lower price points (if that's your thing), as well as nearby cities that are still relatively affordable like Fort Collins, Colorado Springs, and Pueblo.

I learned how to landlord and gained a basic foundation in investing.

Conversely they may take it without further inspection as its already at 46% of ARV and the quote to fix the foundation is $11K and the ARV is $1.0M on strong comps. 

Understand tourism market cap- this info can be found at city / county. 

It was dilapidated with foundation issues.

Foundations issues come to mind mostly