I've found through a little trial and error that as long as you have a really good team on your side in the area that it can work out well.

I would like to get into the house to see what I am dealing with before making an offer, but at the same time if I am doing $100k rehab, should I even care what the inside looks like as long as it passes an inspection? 

As long as your goal is to grow your portfolio, then you should most definitely refi. 

@Elias Barend Westhof as long as the price reflects whatever risk you are comfortable with move forward.We've bought two properties already with the same issue, with huge discounts.Regarding the past for rent, it depends on what you negotiate in the purchase agreement.

As long as you know how to do the math - the numbers will tell you your answer:Conventional Loan purchase - 25% down = $40,000  + $10,000 rehab + closing costs (let's estimate $10k just to have something here) - TOTAL OUT OF POCKET = $60,0000HML Purchase - Lend 75% ARV (you didn't state this but this is pretty standard - if yours doesn't offer 75% of ARV then go find a different HML) - 75% of ARV = $172,500. 

The big question here is did some previous owner do an unpermitted addition, THAT would be a problem  As long as the house is original you are fine. 

Thank you for your time out of state zero experience pretty risky. you are putting all your financial well being in the lap of others.. so as long as you can absorb a deal that does not go right then you can risk it.. if a deal goes a little wonky and it wipes you out.. then you might want to rethink you risk profile.  

Also do not do a 10 year amortization, you want to do it as long as possible-25 or 30 years. 

Also send notice to vacate to the new guys but if they are paying I would see when you can get your contractor if it is a while be flexible as long as they pay.

(As long as that is legal per contract, that is)