If there was a Foreclosure Auction checklist that one must do for a successful clean transaction, how would it look like?

Tenants keep unit clean $35K MLS-2180280532730 Berrell - 3BR 2 story -  Long term tenants, $645/month, pay well each month, unit will need rehab (windows, floors, paint, probably kit/bath if desired) $32K MLS- 2180280611776 Republic Ave. - 2 BR flat with full basement, somewhat finished Vacant, needs rehab: Kitchen cabinets and counter are in good condition, unit needs flooring, paint, tub kid, 2nd bath in basement, upgraded elec. panel- $15K MLS - 218028374

We are both full time professionals and looking to generate passive income so we can slow down a bit and enjoy time with our new son.

For a duplex, IF utilities are cleanly split, I look for more like a 1.1 to 1.15% MROI since they don't have the market gain potential and are usually sold to another investor.

Tenants in one unit are great people and clean but are paying under market value.

Would you buy a good income generating house in a once-designated flood zone?

i don't plan on living in the property but would like to make sure its safe for my tenants.My realtor thinks i should look to a nicer part of town instead but this means i would have to spend more time saving to come up with the down payment since those properties are at least 50-60K more and dont necessarily generate that much more cash flow.

Sometimes, I notice that people who are doing their first deal focus more on the profit from the deal verses learning how the profit was generated. 

Would require new interior paint, exterior cleaning, flooring to replace carpet (when home is vacant)From the surface this looks like a good deal but I am only starting to learn about this market.

The bank will require it since the loan is going to be based largely on the apartment's ability to generate income.