Time is not too big of an issue, as its been on the market for a while a needs a total gut to be livable. 

My first instinct was to call a lawyer and he advised me that he can write me up a letter of intent with the criteria that needs to be met before purchasing the property and a time frame.

Your gut is correct! 

Then we are usually about 2.5-3 months on a "near gut" (moving a few non-load bearing walls, rewire, replumb, etc.). 

I have recently completed my 1st spec home that i likely would not have had the guts to to do had I not been in real estate learning what sales and what does not sale.

My parents also did a complete gut and update on the trailer once the previous tenants moved out.

Go with your gut.

All new plumbing and electrical, full gut renovation for kitchens and bathrooms on all 3 floors.

You're suggesting that I'd be better off picking a city (maybe by going with my gut and maybe an area I am most familiar with/have connections there, etc.), and grow my knowledge about that market (neighborhoods, local economy, etc.) rather than looking at statistics.

He had told me that "we" should gut the whole house, redesign and reframe the interior.