There are many instances where it may not be a good idea, under threat of foreclosure after notice (illegal transfer BTW) bankruptcy, very little equity with a weak borrower can present problems, when a lender has a reputation of calling notes due, when there are title issues, and when you aren't ready with an exit strategy, selling quickly or buying paying off the underlying mortgage.There are many issues to think about, if you fail to pay as agreed and cause the seller to get dinged on credit, they can come back on you.

Look at yourself objectively and then make sure you shore up where you are weak.

The thing I'm concerned about is you seem to have a very weak lease agreement and it is missing several clauses which would make your life much easier.

Here is the rent from my other properties that are all pretty close by.2 bed: $10003 bed: $8753 bed: $1,100 (I got some desperate students at the last minute)3 bed; I'm living in with 2 roomies paying $300 each)3 bed: $900None of these properties are as nice as the one I want to buy, but the rental market is weak now, there are a ton of properties close by that have been for rent for months.

Both of these factors cut down on "strategic defaults".There were alot of foreclosures in 2008 and 2009 (even 2007) as the "weak hands" were washed out.

Note that you have to be careful with this because it may signal weak financing to the seller and spark them to want a higher price.

I may invest in there but I am now wondering if the apartment rental market might be weak because there are so many single family homes to rent.

The weak Euro and stronger Market prevent me to invest Further in the US.I think Huntsville has good ROI and low risk. 

Any offer should be in writing but your financing contingency puts you in a weak position.

I would recommend reading the forums and blogs as much as you can about various real estate topics until you figure out which strategy will fit your personal situation (financial, strengths and weaknesses, goals, etc).