They will also be destroying your house during this time. 

It might be the whole house is gutted, or the roof is really bad and destroyed the interior etc. 

Work to achieve more than expected but don't set goals that will destroy your confidence and commitment.

Finally, what would you do while you're waiting for the price to recover - rent it and allow the tenants to destroy it?

But I'm afraid this guy is going to flip out and destroy the place if he finds out its being sold.

He would be house hacking it for us so we could do 3.5% down (though it destroys our cash flow so I'm not convinced it's the best option) I assume I would co-sign on the loan since he has no credit yet.  

Most properties worth owning will have a tax assessment that will destroy your cash flow when coupled with a 200k purchase price. 

Horribly upside down and after a good first renter, I was had to evict the second renter only to find that she destroyed the house and stole all of the appliances. 

Then you will lose the property and destroy your credit. 

Termites, mold, asbestos any of those things will easily destroy a budget.Some people are happy making 15k while others have a much higher minimum.I think the potential for profit is there at just about any price range, but it's finding that house and getting it for that price for increased profit.