I've been pulling averages from craigslist and rentometer for the areas I am looking at, and it looks like renovated 3/1's or 3/1.5's provide the best opportunity for higher rents without much additional acquisition costs. 

What if I paid for all of the renovations (putting a lien on the house) and then once the house sells, I would get paid back for the repairs + a profit on top.

Although I am not completely opposed to renovation I am looking for something a bit more turnkey which I can add value to through non structural improvements.

We fully renovate each property.I would recommend you visit the Omaha REIA group the third Monday of the month at the Westside Community Conference Center S 108th St at 6:30. 

It is 4000 sf, a beautiful south Tampa 2 story home, which would require 90K in renovations to convert.

I only have a summary of the two properties in the 30 days of marketing we generated 6 offers before selecting a cash buyer that closed in 14 days.In 2013, Elgin ranked number one in the Chicago metropolitan area in new home starts, while ranking second in new home closings.[17] Elgin's downtown has also been the center of city renovations and new developments.

Underestimating the cost and time of renovations (usually with limited reserves to work with) and overestimating going rent rates.   

I've bought and sold 1 house, bought, renovated, and rented another that I still own. 

I recently looked at a property that I like, but I'm not sure what to do with it. The home is a pretty run down double wide that would be vacant if it weren't for the raccoons that moved in. There is value in the land...

You normally do some renovation to the property to improve the value.