While the home was purchase as an investment on a 12 month interest only loan, I will be refinancing to owner occupied.Here are some details:Purchase Price $137,000 including the adjacent vacant lotConstruction Budget:  $33,500 included in the loan (real costs are more like $50,000) lesson #1 - Increase knowledge on renovation costs.ARV:  $196000Rents:  $1600/month conservativelyAgain the plan is to refinance, move into the lower, and rent out the upper. 

If I was looking at the building, I would use 15% of the gross rents for my repair budget. 10% of the gross rent for a management fee and 5% of the gross rents for the capital Expense account

I'd probably want to do the most full rehab I could do without going crazy with the budget.

@Joseph M'Mwirichia  A repair budget of $20 per month, won't even be one service call.

As another pointed out above, your rehab estimate needs to be accurate so explaining to yourself how you came up with a rehab budget is super important.

How does one stay out of C class neighborhoods with limited capital starting out and have room for a rehab budget?

It will give you a better idea on your budget and make "pulling the trigger" faster.

Example, I had an investor recently that told me their rehab budget on a $350,000 ARV was $100,000. 

However, I did stumble across a company called Budget Refinishers last month.

Somewhat similar, our family trucking company also had a leasing company and we paid to rent own trucks - (from one company to the other) all 100% legal and offered tax benefits.