We entered escrow last week. 

Exactly why I've said over and over to do your research before entering the market, would you buy a Long Term Rental without first running the numbers?

It is locked up and secured to prevent vandals (not the legal owners) from entering the property.The bank can be negotiated with like anything else: they can postpone the foreclosure; they may reinstate the loan if you want to keep it; If you're upside down you could do a short-sale; and they have the power to waive fees.

I recommend scanning your receipts and entering in bookkeeping program your tax lawyer or cpa recommends so that you can see first hand where your spending is going and to double and triple check your accounting firm.

@Rick Pozos That isn't my intention as I do not have any buyers involved with pre-foreclosure yet in the state of SC so I'm not entering this field yet.

Unfortunately, the Housing Authority doesn't care what Zillow says, and you cannot enter into a side agreement with the tenant. 

Yesterday, I saw a gentleman entering the property so I approached him and was able to take a look into the home.

He didn't die in the unit but he did leave the worst smelling apartment I ever entered in my life.

Is this a generally good way to enter real estate or is investing in these neighborhoods something better for experienced persons?

My on topic answer would be to charge a higher deposit (check local laws for maximums that you can charge), or some sort of incentive, like 5% off rent paid early.I would also not enter into a long term lease.