My realtor did a walk through via FaceTime and the property seemed to be in great condition.

Your renter may stay with the $100 increase but when you try to raise it again next year (which you will) they will definitely walk.

So they have to put down 7% ($52k) just so you can walk away from the house with nothing. 

if it was mine here is what I would do.1. walk in to planning department in the county and check zoning and any red flags they may have.2. should be simple enough to see if it has public water and sewer then call those agencies to make sure there are no moratoriums. 

I started walking down the same road - buying smaller residential properties by myself. 

You'll have costs that are deducted from that number, so let's say you walk away with $100k.

I was more than happy to walk away from my $2500 earnest money instead of buying such a rat trap. 

I don't have financing for lack of trying....I have been working on financing for the last 9 months or so....I have been struggling for all the reasons you outlined and am not willing to walk away so am paying out of pocket to get this across the finish line. 

Walk through every step and make sure they are comfortable By following these steps it may take a year or 2 to become expert in your market for you to start investing  

If you have a good team to be your boots on the ground, they will be able to assist you and walk you through the process.