With a trashed foundation and trashed roof, I personally wouldn't touch it unless I could get it at the flipper price... ballpark ARV*70%-rehab = max price.
Which in all probability means I personally wouldn't get it, because someone out there is probably being foolish is comparing the price to other properties that do not have a trashed foundation and roof & with their flawed reasoning they think it's a great deal. I don't want to "win" at a game of who is the biggest fool!
However if the preceding paragraph is not true, and I could get it at that steeply discounted price, that's a different story.
Looked at a very similar property last week - concrete foundation on a crawl, newer heat pump, metal roof. In the end, I just couldn't do it. The cash flow per door was a little weaker than what I wanted, and while the area might be improving, it's not clear the path of progress from downtown is going there, and I wasn't comfortable with the risk.
Like @Chris Mason said, if it's a screaming deal all of the above might change, but I just couldn't do it.
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