Enjoy the beach, and this was a great price for a unit that only needed cosmetic work.

Category 2 is likely to be fixed in near future/minor repairs (these are cosmetic repairs or things that will have a short remaining lifespan (i.e. a water heater with 3 years of useful life or less etc). 

Purchase price: $368,300 Cash invested: $115,000 \Phase #1 rewire, all new bathrooms, flooring, ceilings, drywall, sunroom repair, foundation, LBW removal for open floorplan and other cosmetic items, cash and elbow grease about $65KPhase#2 HELOC w local Credit Union after forced appreciation, hoping to be at least $500K, HELOC @ 4% for 12 months at 90% LTV use funds for remaining renovations like Kitchen 30K, Pool 15K, others 5KPhase #3 Cash-out Refi, get all cash back and leave 20% equity position in house at a $625K+ ARV.

Purchase price: $368,300 Cash invested: $115,000 Phase #1 rewire, all new bathrooms, flooring, ceilings, drywall, sunroom repair, foundation, LBW removal for open floorplan and other cosmetic items, cash and elbow grease about $65KPhase#2 HELOC w local Credit Union after forced appreciation, hoping to be at least $500K, HELOC @ 4% for 12 months at 90% LTV use funds for remaining renovations like Kitchen 30K, Pool 15K, others 5KPhase #3 Cash-out Refi, get all cash back and leave 20% equity position in house at a $625K+ ARV.

It's not brain surgery. 

You’ll also want to ensure there are no cosmetic surprises, like holes in the wall that weren’t there before or loose/damaged kitchen cabinets.

This being said...start small with cosmetics - paint/drywall is not going to kill you price wise.

Keep it cosmetic if you can.

It's in foreclosure and in need of cosmetic work. 

I look for the biggest, most expensive problems: roof, foundation, heating and cooling, electrical, and then work my way down the list to the cosmetic.