-Ultimately, I can't stress this enough, do not "small time" yourself. 

I would also consider taxes into your situation. 

don't start with a flipstart with a house hackhttps://www.biggerpockets.com/forums/88/topics/1173853-3rd-h...talk to a CPA about the tax situation

It sounds like you've got a complex situation with your small syndications.

You would also have to be very strict about who you rent to, and make sure that they have sufficient income or resources to pay the rent, so you don't get stuck with a bad tenant situation. 

So yes you had people in a high degree of stress and did not want to move the kids or themselves and since we only contacted them about 5 to 7 days from the foreclosure sale they were highly motivated.

My friend said even if this person could be struggling and be late a couple of times a year or may not make 1 month rent once a year, since she is a long term tenant per her past and paid her rent without fail every month, and is motivated to make the new rental situation work for her financially, long term, if she stays 5 years, although occasionally could struggle a bit, I still will do better than most other tenant choices (frequent turn over, etc.)My rent is still covered by my past tenant at the moment even though the property is vacant as the Lease has stipulations for that the past tenant has honored faithfully.

I had a similar situation, but near Denver. 

Break even may be ok  if I think the situation  will change in near future, but I´m not a proponent of being under water.

Consider talking to an insurance agent who can give you specific advice for your situation!