How much time and money do you want to invest in a foreclosure to rent/flip? This is an equally important tangible as the home's value. The worst possible scenario is you getting burnt-out or over-spent on repairs that you simply foreclose. Make sure your family/friends are supportive as you will quite possibly their help at some point.
Certainly, if you are up for the work... have your agent recommend an inspector. Also have your agent compile a list of sold comparables in the last 6 months. This will provide the final and most clear answer if your rehab is worth doing.
If the home is within the City of Detroit, you will be required to complete an Affidavit of Compliance and Responsibility (ACR). All repairs noted by the City will have to be completed within 6 months. I would not submit an offer without reviewing a copy of the City's inspection report. More information is available on the City website I believe this is the correct Department http://www.ci.detroit.mi.us/plandevl/Default.htm
I am doing a few rebuilds like this in varying neighbourhoods, but the basis is always the same.
Send me an email, and I can send you a spreadhsheet of a project I sent in for a property closed last week.