Most of my investor clients like to see a potential profit of 18% or more (total cost to buy + cost to renovate + cost to sell = 82% of future sales price).For buy and hold properties, simply try to find something at the appropriate cap rate or better.

More simply put as a buy-n-hold this looks likes a good deal.

If that's your plan, I agree with @Jeremy Pace, that you should simply explain to agent what you want and exactly how much you want to spend to get it.I've learned that statements like "I want a good deal" or "I want something inexpensive that needs work" are too broad for an agent to get a good idea of what you want. 

I was leaning towards building simply because I wanted to 'max out' what the insurance company would give.

You're going to need to do something to create more value in the property if you want to pull out more following your original 25% down... which could come simply from 3-4 years of waiting on appreciation.  

This is what makes this very tough for a homeowner to buy something to live in. as they get lazer focused and it never goes to sale. they waste time and energy chasing it.And if its LA if there is any equity at all you will have massive competition..For due diligence simply order a preliminary title report for a few hundred and that will tell you the story.. some auction sites will publish the TSG  but not all.good luck

This is simply reporting, doesn't get you in trouble, doesn't trigger audits, just gives the IRS a flag.

Imo Inglewood will probably have double the appreciation long run simply due to lack of available land.Good luck!

What if the company simply goes out of business or closes down?

Will all delinquent property over 4-5 years old all be simply vacant land?