I understand most of the basics from working with investors over the years, but still would like to approach this with a blank slate and learn from trial and error.

I'm in agreement with everyone else here.I used to drive down that area for over 6 years (still do on occasion). 

Then you can work with the mortgage side of the bank and get better interest rates and higher refinance numbers.However, I've done what you're looking to do on two separate occasions, and I'm in the midst of my third time.

We had no recollection of a foundation issue, so no, that was not addressed before though we've had steel beams put in by an engineer who assessed the structure of the entire property twice in different occasions and never made a mention of it, hence our lack of awareness for this particular line item in our old inspection report.

Because most properties pick up more value and can be refinanced after rehab to a lower rate loan; almost no one ever keeps the 203k loan in the futureBe sure to have a great well recommended HUD consultant who gives you great service and writes a detailed Scope of Repairs document  which identifies any Mandatory repairs, Recommended repairs and Desired repairs so you know how much this will cost and can adjust down if need beAsk for a 20% contingency reserve instead of 10% just in case; if you dont use it , your loan reduces at the end by that amount and you dont borrow it- it is used for unexpected costs discovered during rehab not in the contractors budget or SORShare a BLANK version of the SOR called a BOR with  the contractors which lists lists all task and material qualities and labor needed but NO cost on this one so they bid honestly Be sure YOU understand you have signed a binding CONTRACT with the contractor for the work on the SOR at that COST.

The problem is that right now homebuyers are bidding SFR in these areas out of cash flow on most occasions.

I like the approach of Nathan and Wade, and though it is like Landlord classic rock, I still like some of Leigh Robinson's forms from the old Landlording book (iconic yellow book)... the form is Notice of Change in Terms of Tenancy (Rent) and is very "just the facts"....To paraphrase: Effective (blank date), your rent will be increased by (blank) per month to (new total) per month.. and some more language. 

And X is calculated and filled into the blank as 120% of the purchase price.

Or on other occasions, it helped me realize I'd found quite a deal.Joffrey Long

So I bought it, I put a 'for rent' ad in craigslist, found a blank lease on google, and I was off to the races.