In your shoes, you know what things cannot be changed in your life (the fact that you have debt, rent, any family situations that affect your availability). 

So if I were in your shoes I would want to be really confident in the exit strategy. 1) confirm rent estimates 2) confirm ARV and the demand in that area to buy a house like that in the price range 3) are there banks willing to refinance at the LTV you want with the seasoning period you have. 40k for a house of that size that needs that work would be the cost of materials alone where we live in WI, so verify your estimates.

☺️)...you might talk with the realtor and it goes on the MLS and it sells to someone else....or it might sit on the MLS for a while and you eventually get it.My point is, as a realtor and investor myself, put yourself in the other person's shoes...they don't want to feel "pushed" or like someone is trying to take advantage of them. 

Now I guess the OP could make the argument he stepped into the shoes of the 2nd DOT holder but I'm not sure that works when you obtain title via a Trustee's Deed since there are no warranties. 

I was in your shoes back in 2011 and this forum actually gave me a push to make my first investment purchase.

This pack of gum (that I did not pay for) accidentally slipped into my pocket...This bottle that I did not scan just got mixed with the other bottles that I did scan...This receipt is not really for this pair of shoes, but I want to return it anyway...Sorry that I dropped $10 ear buds into this Amazon return for $200 ear buds, it got mixed up...Should I continue? 

In my shoes I would want the stability of the cash flow and look to leverage as a long term rental through a PM.Some folks want to cash out and reinvest the new found equity in a higher producing asset. 

And you must use all of your net proceeds.Here's the other shoe dropping however. 

These are a couple options I'd look into if i were in your shoes. 

Most investors in your shoes start out usually in midwestern markets that are booming.