The question really comes down to the depreciable basis to start with, as well as how much land improvement, and interior components. 

If the foreclosed property has interior access, you can setup time to take the contractor through.

There will be very minimal work on interiors (less than 2% of the whole project).

Second moisture problems in basements can not be adequately resolved from the interior, you need a foundation specialist.

SFR: 4/2 over 2067 sq. ft. with 10,000 sq. ft lot and pool Illegally added 3rd bathroom and kitchen added to dining space Repairs needed: -New windows-new paint interior and exterior- has small kitchen (could knock down wall between living and kitchen or between kitchen and hot water heater closet in garage)-complete rehab of two baths and kitchen- pool supposedly worked but not confirmed (was empty) - new fence in back- new hot water heater and furnace- new garage door needed- landscaping in big back yardFor US, the conservative estimate for repairs was $60,000 - $70,000. 

Is the deal subject to partners approval, interior inspection etc?  

The third will be installed on the interior (location TBD). 

Might also need bids from a regular contractor to help you with the interior water damage.

The few interior photos showed some vintage 80's oak.

There are no pictures of the interior but as long as repairs are no more than 10 or 15k this would have been a better deal for me.