there are probably guys that can put the property back together for $60k, but I would look at their scope and background very closely.I've seen dozens of guys get burned on gutted properties they think will cost $50-60k to get rent/sale ready...maybe this is who you want to flip your contract to...just watch the progress and be prepared to snap it back up when they run out of money.In reality, you should have an architect/engineer on the scene to develop the scope and construction cost estimate.

This person has told me they smoke meth and is paranoid that his car is going to get stolen and all the neighbors "watch him".

And definitely watch out for restrictions!

I guess this is something to watch out for but I am not sure how often you should expect it to happen. 

Two schools of thought on diversification ... the alternate to what you describe being what I call the "Mark Twain" portfolio after the author of the quote "Put all your eggs in one basket, and then watch that basket very closely."

I'm still new but I will encourage  you to start by reading, watching, & listening.

watch Craigslist for a dump trailer.

I subscribe to Brian Dean (his videos are entertaining & informative), Neil Patel (consistently posted these 2-5 minute clips & Josh Bachnyski (Canadian who seems to know what he is talking about, must take notes when watching his videos).2) Content, in my opinion, should focus on your target market (distressed homeowners).

. - Caveat to all this is that, you still have to have a filtering process; [i.e. test them on various tasks required for the job, have instructional videos so once hired, they can just watch the video(s), have bonus structure to incentivize, etc]

I had another friend who attempted the same thing (in a house that looks very similar to yours) and was unable to get a letter, which was fine because he was in the due diligence phase, but it's something to watch out for.Anyways, hope that helps.