Is there something else I can do to improve my chances of finding better deals in this market?

Main corridors along the light rail are seeing improvement.

It's going to cost me about 15k to do the subdivision and there will have to be some improvements that need to be made (new driveway on my side/ retaining wall) once I sell.

Otherwise, from a planning perspective, you may want to get a non-recourse loan from the onset for the purchase of the real estate--that way the other IRA funds can be used for improvement costs.

They often improve the house, sometimes significantly, when they purchase it. 

Then, as experience and opportunities arise, you can work on improving those returns (and modifying your goals).Don't let perfection get in the way of progress! 

I know an expierenced investor that owns many in there and he told me recently the neighborhood is improving.  

The seller doesn't want to be bother with any improvements due to her situation. 

Your depreciation expense might be adjusted from year to year for improvements or depreciable replacements you made since your purchase, but there is no adjustment for appreciation, inflation, ARV, tax bracket changes.Should I add estimated income taxes to my non-operating expenses to get a more accurate analysis of cash on cash return.Most investors calculate cash on cash return before depreciation and before  taxes.  

You might be in better shape if you bought something with a greater margin of safety built in and improved it efficiently.Good luck and feel free to reach out if I can be of assistance in any way!