@Daniel LevineNo doubt the cap rates are low and the margins are slim all along the front range. 

Because the chances of someone having a clean record prior to renting and then becoming a felon and/or sex offender is pretty slim.

I wouldn't spend money on an attorney, unless I had to.Odds are really slim this tenant would sue you. 

Again, ROI on that endeavor is slim to none at best like Correct @James Wise every market is different, this is a C-D neighborhood and tenants have been know to take advantage of a good situation.

I do need to put a new roof on it soon but with such low rent, it's a hard pill to swallow.I may move back into the house in a year or two.

Two wordsDue DiligenceThat's going to be a hard pill to swallow. 

Let's say you still walk away with 30K after everything's said and done, would that gross profit still be too slim?

Well right now at 37 I do not have health insurance.Luckily I have been very healthy so far with little to no issues.The issue I have is policies.The insurance companies do not cover much of the payment yet charge a high monthly fee for their policy.If you go into a doctor's office with insurance they will charge the maximum from the insurance company.So example with insurance a bill comes to 150.At 50% my co-pay would be 75 plus I am paying monthly to the insurance company for the policy.If I say I am not insured and pay cash they charge me 100.I save on costs not having to pay monthly on the policy just when I need to go AND I don't have some stupid policy telling me which doctor I have to go to.I also don't have the primary care doctor pumping me with pills which have side affects because the insurance company doesn't want to pay to go see a specialist to fix the problem.Also the specialist that you have to go to with the policy can be far away and the a long time before you get to see them so you suffer longer.Now you can get catastrophic care if you need to go to the hospital.You save on regular doctors visits but if you have something serious you get the insurance to cover the large bill.

Chances are slim to none at that level of debt and especially at those rates.

Not related to Eastern PA, but you cash flow target is a little slim.