I learned a very valuable lesson with the clients response.He simply said "If I accept a personal guarantee as security of payment then I must be willing to use such guarantee to collect.

You simply don't renew their month to month tenancy. 

Also, try to get to know the area as best you can - it makes a big difference when looking at properties when you are used to the home values in the area  - Another key piece of advice that wish I had when I first started out was to start networking with other investors as soon as possible - not just online - but in real life - sit down and have lunch - maybe offer to take them out for coffee and pick their brain - you would be surprised how much you can pick up on in a casual conversation with someone who does this for a living  - the insight simply unbeatable.

Sellers are simply asking too much and houses seem to be sitting because of it.

If they are asking 60,000 a lower price is a given it is simply a matter of how low.

I ended up choosing the bank that I did simply because they had more experience doing these types of deals.  

@Kevin Fox I actually was thinking long term as far as the 10k equity, I simply failed to mention my goals.

Also, it's a big win on the equity if you're levered.

Win-Win

Sales comparison looks at competing retail sales, income evaluates the subject as an income producing property, and cost (simply put) focuses on the current cost to build/replace a property.