Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If so, you may be able to wholesale the property to someone (perhaps even someone in one of those $400,000 houses) in such a way that you and your grandmother come out whole.

Even with a W2, it's completely doable with the right systems in place. 

Honestly with an interest rate like that you could even not pay off your primary and put any excess capital in a high yields savings account and be financially further in the long term.  

I made a great connection with that property owner and proved the concept since he was unfamiliar and hadn't even heard of rental arbitrage.

I agree with the other comment, you unfortunately do not get that money back even if the seller was not upfront on an issue. 

He even chatted with me through this forum (Bigger Pockets) and was very encouraging that you can even do it just with free stuff out there.  

I would even call those agents and see if they know the finishes that were put into the property, if not ask if they can setup a call with that investor to see what they put in..

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

Even better if you buy 2-4 units, live in one and rent the rest - then repeat every 12 months.