So yes pay it off.One thing I am not sure what you mean "if I use all the money towards purchase I wont be paying taxes" - what do you mean by that?

You cannot use personal funds.You must pay others to do repairs and manage the property.

Once the new tenant starts paying rent, you release the old tenant from any obligations.

Ideally you have the company and the tenants on the lease since one party is paying rent and the other party is in the home.

Fix it up and rehab or flip and then you can pay yourself back and have a little bit extra to push to the next one

What are the expenses (taxes, who pays utilities, etc)?

Would you mind answering my question at the end of this paragraph (2nd to last sentence) sorry I typed a lot of other stuff you don't need to read..I never would have thought a conventional loan at a big bank would have such twisted fine print.  

Challenge is that I have an exclusive agreement with the seller because they wanted to list it, but changed their mind.  

NWA is rapidly expanding, it's mind-blowing.

However, if you know and have a relationship with the person/team that will be doing the rehab for you in your absence and trust they have your vision in mind then you are in a better place to start.