How do I identify properties that I can add value to?

I'll share one thing I've seen from the SFR space, just for kicks.

There's a sweet spot ("not busted and torn apart, but also not not updated and current... juuuust right") where the property is traditionally financeable, but severely neglected. 

Often it involves bathrooms and kitchens that are old and gross, but technically functional, complete, and just this side of being a health hazard. 

"Granny houses." On average women live longer, so typically Grandpa dies first. And Grandma keeps living there for another 25 years, making zero upgrades and only doing the barest minimum of maintenance. Grandma does traditional 1950s gender role stuff though, so the kitchen MUST still be functional because she needs to bake for the grandkids!

Then she passes away, and the surviving family can't agree on putting money into the house before listing it. Most of the retail buyers are turned off, because that house over there comes with shiny backslash behind the kitchen sink and doesn't smell like 50 years of cigarettes.

$$$

You might have to visit a LOT of open houses to find these gems; they typically aren't the listings that listing agents are most keen to promote and be proud of.

85% LTV if you are not going to owner occupy, 95% if you are. Typically these aren't a good fit for FHA 96.5% LTV.