Secondly, many condo associations are run poorly and have little in the way of financial reserves, so unexpected repairs, maintenance, or upgrades could translate into surprise special assessments that will gobble up your profits.Flipping off-market properties is a sound strategy, but it requires serious marketing effort.

I have put $40k in renovations to both of them (they flooded and needed extensive repairs).

Since inside condition is unknown you need to make assumptions of repair cost.

I understand that I can get a much larger house with only needing 3.5% down, however the repairs and upkeep are still going to be scaled to the larger size of the house.

Now you have to do your repairs which will probably cost you way more than the damage deposit, and time before you get a new tenant in...

I have a $30k HELOC which funds down payments and or repairs.  

I am also a licensed real estate broker with Nottingham Realty Group and I have had a lot of success helping investors (both local and out-of-state) buy investment properties, repair them, and either lease them to quality tenants (BRRRR) or sell them as a flip (BRSR).

What's the property worth and what kind of repairs are needed? 

Heck, there may be a friendly owner who is willing to give you a walkthrough and break down some of the repair costs. 

In my mind 70 cents on the dollar after repairs?