You could lease option the house as is, accept all future repair costs, agreeing to make the $1,100 monthly payment with the strike price set  equal to the loan balance at the time you exercise the option.  

I'm not big on the various BP "rules", but this sort of house in this sort of neighborhood strikes me as a virtually certain candidate for 50% of gross going to expenses.  

I'll don't know if you'll strike gold or not, but it's worth a little digging to see if there is any.

The waterfront there is really quite striking, and I've wondered if that city might become much more desirable in the years ahead.

@Nicolas Vautier I am about as worried about the water shortage as I am about global warming and a meteor striking earth and causing Armageddon.  

Can I refinance this before the 5 year balloon or is this something I have to strike up with the owner?

Finally, set a strike price and stick to it no matter how much you get caught in competition and the heat of the moment.

All state laws are different, but out here in CO, you must practice under a licensed broker for two years before you can strike out on your own.

I'm still trying to strike the right balance (I love analyzing deals and doing crazy amounts of scenario analysis) though...Good luck!

If they pay late, keep the place dirty, and are lying about extra tenants staying there then it's three strikes and your out.No legal advice.