Go to the Grand Canon, even off the edge of a cliff they have a tourist attraction with a glass floor bridge and deck, so there can be uses for almost any square foot on the surface of the earth.....you just need to recognize that use. :) 

You can have to prefinished floors re-finished for $2 per square foot in 3-5 years when they wear through.

Located in a desirable area.  1/2 acre.  4 foot crawlspace/dry.Similar rehabbed homes sold last year for $130-140k   Rental rates about $1,100 per month.I know the neighbor and original owner of the home before he sold it in the 80's  He gave me some good info on the home.  

I have never owned any property, have lived my younger years in a tiny apartment and just recently move with my wife and son to a nice 850 sq foot apartment in the Bronx.  

Don't worry about your first reply, I've been know to stick my foot in my mouth on may occasions, usually after to much alcohol though, JK, not really!

Is there good foot traffic?  

Selling the house will enable you to have a substantial amount of reserves as a sort of solid footing to finance the vacancies for deals just like this one (no job required).Selling with the lease-option or selling outright seems to be the way to go.          

@Lisa Moon  real hardwood in our market is 6 to 10 bucks a sq foot to buy and install.. are you sure its the same price ?

The BEST way to get your foot in the door is to monitor it yourself, wait for the property to go vacant (even before it goes to foreclosure auction) and call that Broker or whomever is listed on the "IN CASE OF EMERGENCY" sign on the front door or window-- this is standard requirement again for most banks, placing that sign.4-Equity firms- Here's some good news...

We did MUCH better with single family homes.Second the key is to get your foot in the door.