@Phil Jameswe have a fellow investor who wasn't underwater to the extent you are, (nor at as high a price), but he had major Landlord issues (inexperience) & couldn't get rents paid etc.

Suggesting that your original repair estimates might be off was based on your inexperience, not that big spreads don't exist.

This is why the moment I hear a hungry-realtor saying how they want to get out there and get with a client like yourself because there going to make "oh so much commissions" or that an agent works with "all investor buyers" I just giggle and walk-on, because that's just a declaration of ignorance and inexperience. 100%, what your doing as an active value-shopping investor, going for small-"pop" properties, it either (a) isn't worth an agents time because it simply does not pay enough for the work involved or (b) the agent is too green to know this and than, since they are so green, there no-good at it anyways. 

If not - one thing you will have to realize that you will probably have new construction subs trying to get in your shorts a bit more preying on any inexperience they may sense you have with new construction and the corresponding costs.  

Ok, maybe inexperience and some other things but sometimes you just have to jump in, rip off the band aid...pick your metaphor.I would appreciate any advice on what information I need to gather to make a good decision on if the property is a good deal or not. 

Don't get me wrong, there is an opportunity, most agents turn away rentals because of the hassle, inexperience, and lack of commission check, but again you only business model it might be a struggle to get up and going.

Your returns in experience, education and confidence to do your next deal are almost always more meaningful than your cash flow. 

Using a contingency is a minor league move and shows inexperiance as the major league players know what they are doing, they find the deal and make the money on the buy not the sell.Knowledge is power, thank you all

Keep in mid the rental loss and inexperience with real estate and rehabbing for your first property.

Our fear is with our inexperience, we could run into some issues that would be better dealt with if we were living close to the rental.