Your limited income doesn't necessarily have to hamper you when you combine it with the existing tenant's rents. 

The other two have access in the back alley road which has several new builds and modern homes around.

Why not combine both strategies?

I'd base my offer around the property's income combined with my demanded rate of return, as well as the comparable sales in the area.

Many people combine with a FHA loan.

I spend way more time and effort on this one house with repairs, evictions, no pay, etc than i do with my other two houses combined that are in better neighborhoods, one being very close by but worth nearly triple the price so i get better tenants.Its not all bad, I have had a few good tenants but they don't stay long.  

From most people I have talked to, and what I have read, most people that rehab for a living use OPM most of the time or a combination of the OPM and cash.

When you combine homeowners with no equity and a loan that they can walk away from without a possibility of being sued by the lender, it is a recipe for disaster.

I've found partnerships generally perform better and have greater combined strength than a Sole point person.

It wasn't any one or two of those "typical targets" she mentioned that are/were to blame...it was the combination of all of them failing at the same time.