Getting your budget and property criteria down would help find a location.

I am aware of PEAKs and will budget accordingly.  

The flooring looks pretty cool but out of my budget.  

If a foreclosure wiped out the property taxes owed every time for the city and counties it would bankrupt them and they couldn't balance the budget.

Also, have some control of the money in the construction loan and keep track of the budget so you know what's being paid, and if it's within budget.

Other potential issues:I seldom find properties with only $1,000 rehab needed,I budget $125 to $166 for maintenance and capital reserves,I usually have to pay management 10% of rent + one months rent to find new tenants.In other words I would budget higher expenses resulting in even a lower cap rate.Good Luck.Bill

While it has its place not a great option if you don't have a big budget to start out and that $500 isn't something you will feel. 

They would rather be in their trucks, driving around town looking at deals, meeting with sellers, sitting at the seller’s kitchen table, making offers, chasing the deal.

The home is a HomePath property, however, due to demand in the area, we had to purchase closer to the top of our budget, such that we could not include any renovation costs.

I would work on a serious budget, pay off your personal debt and put money away in savings.