Lots of rolls of teflon tape, plumbers sandpaper, ALLWAYS bring a roll or two of paper towels and dawn dishsoap for clean up of you and tools and messes.

I do have a rental house with somewhat similar purchase/rent numbers though that doesn't cash flow well on paper, but it's completely remodeled so at least for now my maintenance/repair costs are essentially 0.  

We want to participate in the tax auction, where land owners have not paid their taxes and are listed in the paper. 

What considerations should I be taking aside from the obvious (carpet, curtains, wall paper removal, vent cleanings, etc...). 

Basically, everything is done except for refinishing the hardwood floors, installing light fixtures, bathroom accessories (mirrors, towel bars, etc) and we are still waiting on the quartz counter tops for the kitchens and bathrooms to be delivered.  

That was the first thing I thought of when this house was featured in the paper, too.

Basically, whether you decide to fix it up, or sell, getting escrow funds released is not something you have to worry about, but if you decide to fix, proceeds goes from your insurance company to your mortgage company, and they'll issue checks to your licensed GC, so "profiting" from insurance proceeds is not something that can happen "on paper."

Also, regardless of how nice you rebuild, it is still a home built 10, 15, 20, 30... years ago on paper right? 

Yes CA is requiring our management company to report our tax on the gross rents per quarter, but we are starting to find a paper-trail that would let us deduct the expenses on a different tax form.  

Neighbor came running with a towel,,,put pressure on it and it stopped quite quickly.