The property is in terrible condition where it easily could cost about $150k+ for the renovation and selling “As Is” I’ve checked the comps and it seems that market price for that area is about $250-$375k along with the next door neighbors home being relatively new and renovated from it’s older structure.

After talking with my attorney, he advised that if the condition is bad enough and in rough shape, I can try and deem the property uninhabitable so that I can evict them that way since the property might be safe for them to live in.I'm guessing I"m going to have to bring in a county or city inspector?

Both houses appear to be in good, safe, livable condition.

Depending on the condition, you may want to offer below market value to deal with damage. 

Capital improvements include expenses for improvement to the property, such as a new roof, new siding or major renovations.Capital improvements for residential property are deductible over a 27.5-year period; Ordinary repairs required to maintain the property in good condition, such as painting, fixing leaks and replacing broken windows, are deductible in the year they are paid. 

Portfolio lenders/commercial lenders usually restrict LTV due to two reasons: property struggles to cash flow or your credit score.However, we still usually see 65% LTV or so in these conditions -- unless it cash flows very bad.

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal.

I would as far as what to be aware of, when you purchase a property with existing tenants you are bound to the existing lease conditions until their leases expire. 

In other words, if you’re think today’s overall homebuying conditions are sustainable (I’ll bet you sell real estate), you’d argue the top of the rankings are simply the nation’s “hottest” markets.

@Meghan CusterAside from the aforementioned market conditions and best use scenario, what is your financial position (that is somewhat rhetorical given this is an open, public forum)?