When you can buy properties like this, you can get almost 100% of your money out of the property, convert the property into a long term rental loan, with a DSCR Loan (Debt Service Coverage Ratio) where we as the lender look at the property and if it cash flows, and that is expressed as a ratio, for instance if your Total Loan payment including Principal, Interest, Taxes and Insurance was $1000/mo, then you would need a rent of $1200/mo and you would have a 1.2 DSCR Ratio.Here is an example of a cheap duplex https://www.zillow.com/homedetails/732-Broad-St-Menasha-WI-5...

However, lately, I've been researching co-living and short-term rentals, and I believe the property would be more attractive with a restored pool.

I will show my loyalty to you, as long as I get it back. 

Hi Ruth,For STR (Short-Term Rental), MTR (Mid-Term Rental), and second/vacation homes, DSCR Loans (Debt Service Coverage Ratio) are often the best option.

If you will only be able to get a certain quality it won't matter in the long run how things work. 

In terms of the lady spending all her time reporting violations... yikes.

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

True foreclosures are all cash purchases so if you don't even want to pay $25 for a list or for access to a good site, you are probably starting a long climb up the wrong tree.

Key things to agree to The interest rateamortizing or interest only loanLength of loanLength of amortization (does not have to be the same as length of loan if there is a balloon payment)When are payments due; monthly, quarterly, annually at the end of the loan etc.Are there any upfront points to be paid and other misc terms like late fees.Then have an attoney create a Note and a Mortgage (or deed of trust depensing on the state)

Begin your 'pre qualification' process for the acquisition now (most commercial lenders won't issue a PreQual but rather a LOI) In general, Commercial transactions can take longer due to extended due diligence, appraisal, environmental reports and financing (60+ days) so you'll want to initiate your search during the marketing of the down leg as it can cause a tighter timeline than a residential transaction.