Consider lease optioning the “now keeper” and walking the created debt forward if you lease option buyer can cash you out. 

I also want to be in a good spot for my commute to the hospital, so I’m focusing on areas north, east, or west of the city.Good to know about the 203k loan—I was hoping to do some of the work myself, so that might not be the best fit.

I wouldn't take that money to buy him out I'd liquidate and move into better asset class like extended stay development or 3 story walk up apartments 

I realize it's just an example and my comment is a generalization but just something to be aware of.With regards to the original question, I think it comes down more to what you want to do and what the offer is for walking away vs. rebuilding.That is the exact example a public insurance adjuster used when speaking to a local investor group a few years ago.

Take people's advice and also dont take people's advice, make a decision that best fits your situation. 

I buy to rehab and turn into rentals so Pinson, Pelham, Bessemer are a great fit for the areas and returns I'm looking for.

Connecting with local investors and agents can also give you insights into up-and-coming areas that fit your budget and goals.Good luck!

Never force a deal—if the numbers don’t work, walk away.

Also, don't complain about your offer not being accepted - just submit a better one or walk away - the seller doesn't care about anything other than how long its been on the market and how close to ask you are.

Start screening cities that fit that.4.