Less RiskWith traditional rentals, if your one tenant fails to pay, you’re in trouble.

You might not cash flow right away, but even just offsetting what you were paying in rent while building equity, getting tax benefits, and learning how to be a landlord is a game changer.

Likely the cheapest option is to use a HELOC and with the new rent pay off that equity. 

Our tenants pay $2,700 in rent and the mortgage+fees comes out to $2,360.

I dont think I would have any cash flow from renting after paying me mortgage.

Regarding your other questions:  - If the going value is $260/SF, why would you pay more than that?  

That way you have it available but aren't paying on it right away. 

My attorney stated not only must the person who failed to pay taxes be given notice but also the squatter as well since our suit names persons who were in possession of the house. 

Things they did bad which I wish I had asked more information about:Never involved in the screening of tenantsThey recommended keys for cash by waiving the rent amount buy only collecting fees which they would get not meThe cost to evict is 750-950 yet other companies told me they will include eviction in the priceThe tenant didnt pay in full last month and I was the one calling out to them and asking questions then a few days later I get an email saying something happened with the tenant and they are investigating.You get passed from person to person every week or so.No one told me when the construction was complete and so the house was ready for a week and the post to zillow and other sites was not done.It took them another week to take pictures and then another week to upload it.I was paying 200 dollar a month electric bills while the house was vacant because they left the AC running in the empty property.

Seller was behind on pay HOA payments and in risk for losing the property.