Based on what you've given us here, you might just as well ask if you should buy a car in this area.

Want to sell the car and downgrade with the payment of $730 per month but I owe $7k more than what the car is worth.

When I got that text I immediately hopped in the car and drove to the property (~7min away).

(If you used the CAR Estoppel Certificate form, it asks whether the tenant is currently in default under the terms of the lease.)Ultimately, you own the property now so as @Jack Edgar jr suggested, just make contact with the tenant and explain you're the new owner and the new process for paying rent. 

I want to keep it as a rental property but they want all cash AS-IS, I have been Pre-approved for a mortgage a few months back but my credit has declined due to school and a new car.

For example, adding a $30K pool to a home that is valued at $50K, adding a 3 car garage to a 900 sqft home, ect.

I've thought about an FHA loan so I don't have to put down as much because I want to get my car paid off early, wiping out my second largest bill. 

If I got in a car accident due to running a light by accident, would I be responsible for the damage that occurred?

If you choose the applicant with the cleanest car, the nicest dressed when they met you, the best maintained current apartment, the stronger company they work for, it's one thing.

So the property is a duplex built in 1997 (great condition) in Colorado Springs, total sq ft 2,804 with both units being 2bd/2bath w/ 2 car garage and great views of the mountain and Pikes Peak.