When we performed our due diligence on the property we knew we were going to do something with it and that "something" would include the tenant paying their water bill.These units were taken down to their studs and all insulation electrical and plumbing was replaced.When the piping was replaced we used that opportunity to install a sub-meter water meter.

Distress could be structural issues, code violations, issues with major electrical or plumbing systems, major roof issues, etc.

I would advise though you save the threats on not paying rent for a last step when it is something like heat or plumbing.

Details...for example, (If plumbing breaks you will be responsible to go out and fix it or hire someone).  

I have 15 years of HVAC experience as well as electrical and plumbing.   

I do my best to keep an eye on them as much as possible.Also, I still do some hands on, when we had our Houston freeze all the plumbers jacked up their prices and were very busy, so I had to do some plumbing (pic attached) I had to replace all the PVC in the pic.

Inside, plumbing, electricity are just rehabbed and outside is pretty decent in my eyes.

Before I place an offer I'm trying to get an idea of how much a full gut reno down to the studs including updated and new electrical,plumbing, ceilings, walls, new EVERYTHING...I was thinking it would prob cost at the high end $100,000.

In some areas I can't even replace plumbing fixtures myself.

You must look at he big picture, and unless your speaking of a major roof , plumbing ,  or electrical deficiency ie. costing well into the thousands, don't blow the deal.