Prices go down, causing financial pain for the gentry.

If they’re facing a short-term financial hiccup and you feel they’re otherwise a reliable tenant, you might consider setting up a plan for them to catch up on what they owe.

Strictly analytical speaking you cannot make a financial case for unleveraged investing in real estate.

Quote from @John McKee: IF you took your 600K today and put it into mortgage notes at 12% you will have $72,000 a year or 6K a month in cash flow right NOW! 

All liens are removed from the property as the result of sale at auction.We won the bid, wrote the check to the sheriff within 30 days, and today the deed was recorded, we are the owners!  

As far as financial liability for the loan I'm good with that.

Because of the time value of money I would rather have the cash flow today to reinvest in other projects.You mention that that seems to rely on appreciation- I think it is the opposite, by pushing out the term I am focused on cash flow.

It might be $25K today, but if tariffs kick in next year (or the year after), the cost can rise (whether it is actually because of tariffs or because contractors want to blame it).I would get at least 3 bids and go from there.

Focus on finding a real estate tax strategist who specializes real estate taxation, cost segregations, tax planning and financial planning. 

I am wondering if there is any market in New Jersey, New York, Pennsylvania, Rhode Island, Connecticut, Maryland, or Washington DC that would "make sense" to house hack given my financial position?