My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. 

Communication with them isn't always straightforward, as they are notorious for taking 2 or 3 days to respond to my texts.Looking forward to your insight on this!

@Jesse Jones-SmithCongrats on the job and housing perks—those open some interesting paths!

Since I don't have that requirement, I attract many potential tenants eager to physically see a property before investing 25 minutes online and spending $25-$50 only to be disappointed by a no-show agent, which can feel like being scammed.I keep the showing process short and straightforward, lowering the barrier for more applicants in my pipeline that I can potentially approve!

It's the path of least resistance and how they and their clients are compensated.  

Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date

Start with something straightforward. 

Any hurdles or was it fairly straight forward?

Now enjoying "retirement" he loves to assist other new and seasoned investors down the path of financial independence through real estate investing.The Thursday meetup is quite similar and consists of several local investors who can attend when they are free. 

In the meantime, dive into learning as much as you can You’re on the right path, just take it step by step!