She told me in private that she bought the house with a low down payment of a "couple of thousand" and that she put in her pocket $140k.

I'm considering making a low ball offer.

If I could add to what John Leavelle said  ; it could cost as much as $60,000 to do a full Rehab here in the Philadelphia Area        My Friend Sean just did a Rehab in the Port Richmond Area Close to Fishtown and he it was $60,000        Sean has done many flips and I thought he went as "Budget" as you possibly can , for an example ; he paid $7,000 for a brand new HVAC  (Heat & Air Conditioning)  with new duct work , where that would have been double in the open retail market       Good luck with the project & feel free to reach out to me if you need any help or have questions SincerelyRick      

Go to the nearest Home Depot or Lowes 15 minutes before they open.

You are virtually guaranteeing she gets a low offer.

Below are the models I’ve used (confirmed insurance and taxes with insurance quote and auditor website) at the low and high end of rents.

If the current rents are as low as you imply you might try a cash for keys approach.

My intention at that point, which is likely to change, will be to buy low cap rate/high appreciation properties.

If you get something in appreciating market, like the Bay Area, and you hold on to it for a long time you will see the value of your property rise, but the property taxes stay very low because of prop 13.  

Several of us on this thread are no doubt picturing a very confused expression on a low-life's face who was expecting 90 days of rent free living.