Do your due diligence and find out their bottom line (what they currently owe, how many years have they enjoyed living there, what improvements they have made).

@Robert Polyack I would suggest that you spend sometime browsing through the Bigger Pocket Podcast on their youtube channel and go through all the buy and hold strategy ones.Additionally, I suggest you look into reading "2 Years to a Million in Real Estate by Matthew Martinez" this book outline a lot of the things you should look for as a landlord/RE investor.

There is a real estate investor buying rehabs in San Antonio TX with private first mortgages, with no due on sale clausesThen selling the homes without improving them on wrap around mortgagesWrap buyers are owner occupants RMLOs are used to underwrite the wrap buyersIf you sell on wraps with RMLOs it is my understanding of Dodd Frank there is no limit on the number of deals you can do.

My first step would be to get on the phone with each of the utilities and see what is even feasible.Quite often you are limited by infrastructure and those limitations will cost you to improve them.

I'm partial to lower CAP rate properties that have room for some improvement (such as this one).  

I recommend listening to all of the BP PODCAST Interviews on Youtube.  

I've been binge watching the askbp episodes on youtube as well as HGTV the past couple of days.

I could put 25% down, but would like to try for 20% to ensure i have plenty of money for improvements, reserves, etc. 

Sorry to be dense, but let me run it through one more time to be sure I understand.Purchase price + improvements $100kDepreciation 20kAdjusted basis 80kNet sale price 180kCapital gain 100kYou seem to be saying this in the post I quoted:Ordinary taxable income after deductions 30300 - tax 3618 Depreciation recapture 15% of 20k                      - tax 3000Capital gain at 0% 25k                                          - tax 0Capital gain at 15% 75k                                        - tax 11250Did I understand that correctly?

All improvements are in and plotted ready to build on.