I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs.

I may even sweeten the pot and offer to pay them a few thousand to help them with moving costs.

I will likely be financing this, which is why I need to make sure it covers the carrying costs plus some. 

The cost of entry is low, and cash flow is high.You can find distressed off-market duplexes under 120k and SFH under 80k in B to C-class areas.

Holding costs are alot on hard money loans. 

Hopefully you have a contract and can follow the terms of the contract. get an attorney, give them notice they are behind schedule and place them in default. you need to terminate them the proper way to make sure they do not come back after you for additional costs.

They didn't end up getting the property after the research because the cost wasn't worth it at the time.Call the code enforcement guy when he's in the office or actually walk into his office when you know he's there.

We have a decent amount of savings, at least enough for a down payment and closing costs on our next home, but the buying power just seems so limited in our area. 

I will assume the total cost basis for the property is $500,000.  

I am researching what it will cost and looking for the right contractors for the job and trying to get estimates on the job.