However, in this scenario we are each liable for the outstanding mortgage from the bank and as such, I've bumped against my credit limit with the bank. 

When the tenant moves out, call the utility company again to check if there is a balance outstanding on the account.

  $24,000 +$36,000 = $60,000/ $400,000 = 15%That is an exceptional return and good portfolio management would say to keep it because you are making an outstanding return on your equity. 

Very, very rarely you'll find an HOA foreclosure property with an outstanding lien/mortgage for far less then the property is worth that you can then pay off and still have equity in the property.  

This looks outstanding!

Many lenders set their opening bids at the outstanding loan balance, even if that amount is more than the property is worth.

So, hopefully you can see how quickly this idea becomes fleeting.

Also if they are any outstanding balances on the eviction databases, and the tenants are moving  out of the property because their lease has expired, you have to be able to read between the lines, like someone at the company forgot to send in the notice of satisfaction...

Those houses are professionally managed and have positive cashflow.I have an offer outstanding on a SFR in the Indianapolis area and hope to close on that soon.

But my payment is so low that I am making a ton of money plus the outstanding balance drops by a few $100 every month.