But we had a rash of teenagers burn down almost every unoccupied house in town.

The description says that it's a burn out house and is not livable.

@Lee Burns  Step back first and make sure it's really a deal. 

The market is closer to "euphoric" than it is to "distressed", and while you can't time the market, getting burned in your first deal might be too hard of a lesson to recover from.

I can tell you from hundreds of my clients perspective.they don't want to have the burden and work that goes into being a landlord.. they want mail box money and more passive investment that is secured by the same asset that a landlord owns.. there is a reason those banks have those big shinny buildings.. its massively profitable and done right less risk in many cases of being a landlord or at least let me say a ton less work.. your not dealing with the day to day.. even if you have PM you have to manage them.My note buyers are almost all experienced landlords and as their days of landlord burn out come to fruition they switch to being the bank.. keep in mind unless the house is sold for cash.. everyone buying a rental has two steps  equity and debt  IE their equity and the bank or  lenders debt.Along with shorter term holds.. and if done right no cash calls.

I suspect you might burn some bridges.  

Benbrook, Justin, White Settlement may be better areas but I’ll defer to the Fort Worth guys on that.I’d be surprised if a house that rents for $2,500 sold for less than $400,000 unless it was a burn out.Good luck!

Consider:  who collects on insurance if the place burns down 95% through your rehab? 

@Robert Burns Some lease option investors source deals from agents.

I own a couple rentals in Oklahoma City, currently have four leases, and I’m already wanting to throw my small 3 foot high filing cabinet I bought at Walmart in a burning garbage can...including all contents.