My advice is to hang in there for a few months until after the back-to-school rush hits.

Currently, I am not in a massive rush to get a loan on this property, but I would jump on it if interest rate were low.

At the end of the day the goal should be to make enough to give you an optimum lifestyle but not go overboard and cause yourself more work/hassle if you don't actually need the additional income that comes from it.Increasing the quality of the area/properties should make it easier management wise and if you don't necessarily need the cash flow now could end up ahead in overall return compared to the lower end areas, especially if you use leverage.I think it depends on your source of active income as well and how long you want to continue doing that for.

So, if they offer anything of substance I would take the bird in hand and walk away ahead without dealing with any hassles for months.

My question is: Do I keep the court date and try to get someone to represent me or should I just go ahead and cancel anyways since he has technically left?

If the house hack is drastically reducing your living expenses and you like your living situation, then you don't necessarily need to be in rush to turn it into a rental.

If it will cost you considerably more in the future and loss of appreciation, lose of tax writeoffs and lose of cash flow in the meanwhile, than the amount of debt you are paying off, how does that put you ahead? 

You are way ahead of 99% of real estate investors for the age of 23.

Purchase price: $194,500 Cash invested: $51,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.

if you are going to do the court house steps deal - be sure you can settle.Alternative:view the property well in advance of the auctionfind the owner - find out their problemstry to solve the problem before the foreclosurestop the foreclosurebe careful of foreclosures laws in your areatry to CONTROL AND ROLL the property using an auctionfind better deals - too many issues with F/C buildingsthere are easier better deals everywherewhat you want to do can be done - but start early - find them in the court house before they are publicized - get a head-start on the competition.