The current renter is paying 2600 for the whole house, but when fixed up a bit, the upstairs could likely fetch 2700 and the basement could probably get 12 or 1300.

Based on the question, I'm guessing you are trying to get out of a deal and you would have to come to closing with cash because the property isn't worth what you paid for it.Yes, you can probably get a higher price by selling the property subject to.

I only have enough cash for probably 10% down on anything id want to do.

It will probably save you a lot of time and headaches to go that route.

I need advice on the probability of clearing the title and what it will take to do so.

@Aaron LandauScreening tenants is probably the MOST important steps of renting a property.

Now, for those specializing in this with the experience of 150 transactions behind them, they probably have the knowledge, experience to make it work and to limit the problems of it ends up in court.  

Quote from @Jonathan Greene: @David Lecko probably knows of one.

I will probably follow this advice.I appreciate your answer. 

When you're in the thick of your investing career you're probably better off keeping the two statutes separate - 1031 your investment properties, and 121 your primary residences.