There's risk and cost involved if they have to foreclose. 

If your time is worth more doing something else, then hire it out.If you have someone you can trust to do a good job.....just as good or better than you....hire it outIf you like to be involved and be hands on, then do it ....up to a point.I prefer to do everything I'm capable of myself....if I have the open time.

I have come across this deal in York, PA, involving 3 side by side single family homes.

Learn from someone else's mistakes, don't reinvent the wheel, etc.My goal for my first deal is to financially partner on a flip with someone who has some successful rehabs under their belt so I can be involved in a deal, see firsthand all of the stages of the process, and learn the basics from someone with some proven experience. 

No matter what class the property is you should be providing a clean, safe home in good repair.

One of those guidelines being a clean termite report.

So yes, rehab dollars will be involved. 

@Khang NguyenWhen you do maintenance/fix things - i.e. a broken cabinet door - or when you clean and paint during turnover, those activities are generally classified as expenses.When you add or renew things to the property such as fixtures (lights, plumbing); a new HVAC system; new roof, new flooring, etc.  

Put a clause in your leases going forward about what can be flushed and cannot and chalk it up to a lesson learned for all involved.

All I have been told is that it is in "clean" condition, but I have not yet been able to see the building in person.