I would also agree, personally I prefer to underwrite deals so they will cashflow day 1 without any improvements at all.

SBA 504 loans can finance owner-occupied commercial property improvements.4.

Adjusted Basis May Include Improvements and Selling CostsYour adjusted basis is not just your original purchase price, it includes:Major capital improvements (e.g., roof, HVAC, not repairs)Certain acquisition costsLess any depreciation you claimed (or were eligible to claim) if the property was rentedIf the property was a rental, even without gain, you may still owe depreciation recapture tax, which is taxed at 25% on the total depreciation taken.3.

Wait for the cash flow to improve and the appreciation to add up.good luck

Improvements would run me around $40,000-$50,000 so I put it in as a $50,000 budgetI assumed a 20% down payment on the purchase price at a 6.85% interest rate. 

I agree with others that staying local for your first deal is better as well as finding a property that is not SUPER distressed, but more "outdated" and needs renovations/improvements.

Improve the asset and increase its value2. 

. ($600-$700k 10% down or seller financed; furnished smaller improvements like hot tub, putting green, astroturf, et)Strategy: qualify for STR tax loophole, then transition to co-hosting or property management.5.

Great market to invest in, focus on neighborhoods with stable or improving demand like North Linden, South Side, or Milo-Grogan for value-add opportunities.

If the past tenant has since obtained real property, purchased or inherited, then the odds of collecting on the judgment can improve.