You are asking for a world full of trouble.

I'm a licensed REALTOR and also have a full time career.  

I just started working full time in a corporate role and am brand new in the world of real estate. 

It appears to be on a reservation because the Bureau of Indian Affairs is involved, @John D. and it also appears that that it may be a contract for deed (land contract, installment sale contract) where the seller received full payment over time, but never transferred the ownership to the buyer even though it was fully paid by the end of the contract. 

Call the veterans administration and ask about charity donations to wounded veterans.You can also call Habitat For Humanity for the same information.

However, I've seen the full income statement from the last 2 years, and the previous owner hasn't been making nearly as much as I would expect, mainly due to high costs.First question: should I be worried that this is a lemon... or is it an opportunity?

Please have the background check, credit check and check his employment to make sure how stable his job is.By then, you will get the full picture and let those guys know upfront that you are planning on inspecting the property for pot smell every month or quarter - if they are still doing drugs they may not lease and if they they lease after your warning about monthly inspections, 99% of the times they must be clean.This is what I would do if I am in this situation and not sure if this is best solution or not though!!!

Even the most sub-par properties are getting full and over asking offers sometimes within hours of hitting the MLS.

Let me know after a full rehab to you think its worth.

I am a very busy full time real Estate investor.