@Sarah Hale  Pre foreclosures on the West coast are regulated by State law... folks can't just willy nilly approach people.. like you can in Texas.

Does plumbing and electric need to be brought up to code?  

:)  I sent in plumbing invoices to request an adjustment of the ridiculously high water bills for several properties, per the procedure told to me by customer service, and it seems those emails have gone into cyberspace.

While it is nice to have the plumber come and do all of the plumbing at once and a drywaller come in and do all of the dry wall at once, it is better to get one unit done.  

Should I still be budgeting for CapEx, as the warranty will cover repairs (covers HVAC, plumbing, electrical, appliances, etc)?

Have hydrostatic testing on the plumbing.

know the age of the furnace, ac, and water heater. make sure the plumbing, roof, and foundation are good. if you do your homework and it checks out... i would say you have a solid deal. unless this place is hot and getting a lot of offers, i would ask the seller to pay some of the closing costs too.  

I have worked in construction over a lot of my life so will fix just about anything in a property that doesn't require licensing (heavy-duty plumbing and electrical).

I would like to add things like regulations on drug use, smoking inside, subleasing, etc.

Focus on the Big selling points 1st Kitchen (mid end 12-15k), Bathrooms (7-9k), Exterior (6-8k), Electrical (4-8k), plumbing (2-5k), and contingency (5k)All in MAX 50k ish.