While this can maximize leverage and ROI, challenges include getting lender approval for seller financing, high carrying costs, and the pressure of short-term loans.

I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.  

Relying on a third party to control your positioning, rates, costs, and deal flow doesn't work long term.  

We've learned a ton, but at a significant cost.

I am putting in a link to something that may be help, a cost of living comparison calculator (https://www.bankrate.com/real-estate/cost-of-living-calculat...). 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

A two month vacancy costs you a minimum of $6,400 plus repairs, paint and eviction costs and 26 months later, if no other problems, you have broken even10.

Renting out your current home could provide steady income, helping offset the new property's costs. 

If you live in a high cost of living area, investing in more affordable out-of-state markets can be a great strategy.