However, there has been the odd one here and there where the borrower files BK the day of or day before, which then prolongs the hold period and ties up your capital much longer than anticipated. 

Before the price drop, the house had sat for a prolonged period of time at the previous price...therefore HUD had likely discounted their minimum net.

After three months of eviction process (which they prolonged for as long as possible), we kicked them out.After 3 years of owner where on paper the rent justified the price but with extraneous costs mounting and rotating tenants, I finally realized I made a huge mistake.

The prolonged eviction ban didn't help, but lower interest rates also made it easier for people to buy homes....including renters. 

It's in decent condition, is there anything I can do to prolong the life?  

The reserve funds would be for things such as unexpected major expenses that exceed the current funds for cap ex or if my property were to experience a prolonged vacancy.  

That is have in case of the unexpected, such as unexpected repairs, sudden or prolonged vacancy, etc.  

The lower offers from locals citing the flood zone as a detractor are indicative of the challenges in pricing such properties.Comparing your property to a similar one listed at 1.2 million is useful, but its prolonged time on the market suggests overpricing, possibly due to the flood zone challenges.Your target selling price of $650,000 might seem reasonable given the growth prospects of the area and the property's attributes.

The other thing that hasn't been mentioned is the opportunity costs associated with either high turnover or prolonged periods of vacancy. 

If you could prolong repairs about 6 months, you can get started with basic and some reserves in hand..my 2 cents...GL.