The $2,860 scuttle the analysis for me but the $1,100 is much more palatable so I'm wondering what other people's comfort zone is when analyzing a property.

Hi Dan,I think I’ll be joining a team for now until I’m comfortable out on my own. 

The OP has his own set of parameters and boundaries that he feels comfortable with, so let him use them to guide him in his business decisions...it's his money on the table after all.....

If your open to sacrificing some of your comfort for a few years, you can make a BIG impact on your life with just one or two house hacks!

Thats a fantastic book for someone in your shoes.

You definitely have some options and there really is no right answer, just what your comfortable with.

You really need to know the tenants comfort level.

Otherwise, if you're not comfortable with it, I'd say keep looking for a renter with a more "normal" amount of debt. 

I was afraid that she was going to file bankruptcy when she got over loaded and the BK court would force me to let her live in my rental without rent until they settled her issues.Her debt was mostly credit cards, used the $ on trips, eating out, expensive clothes and purses and shoes. 

A demolition is a disposition for zero dollars of consideration, and I am comfortable with the position that if a dwelling unit is demolished or destroyed, and the subjacent land is sold thereafter within the time confines of Sec 121, the land qualifies for the Sec 121 exclusion as long as the prior dwelling unit would have met the ownership and use requirements under Sec 121 notwithstanding the demolition or destruction.