I have only being using MLS listings to see the numbers (just as a beginning step). 2) How did you vet local contractors?  

As you can see, the edge of the yard is surrounded by timbers. the actual yard is about a 1-2 feet high from the curb.

Also, see the discussion linked below about passive fund structures. https://www.biggerpockets.com/forums/70/topics/371926-notes-funds-for-individual-investors-what-are-the-best-players?

So it is kind of sad that seems to be the rule of thumb they are applying.I wonder if they make people sign non-disclosures.I can see the complaints coming. 

So, I see the situation as follows:I have gotten a quote from a reputable builder (award-winning) for $125-$130/ square feet.

Hi Colton, I can see the transmission tower when standing in the backyard of the house. 

I was paying $34/inquiring but getting really great info, including all open revolving accounts and their 30,60,day histories, collection activity and all public records (and it looks like the UD actions will soon be expunged).With that level of detail, you can see the income and expense (deriving the discretionary funds) and the accounts the  applicants prioritize and those the skip on. 

Possibly a better alternative might be to get the property yourself, then have a Project Management company manage the rehab with solid contractors, get you weekly updates and multiple weekly inspections, so you can see the process happen.  

I am going in to see the property Monday.

You like one of my former Attorneys run M2M - I see the benefits on that all day long, I just operate differently than you.