Hang in there though and push the rental to as many sights as you can.

Likely the only thing you can not deduct from that bank account is the principle portion of the mortgage. 

Because people were listening to their loan officers telling them how much of a house they could afford rather than doing the math on their own, and figuring out that they really could not afford the house that they were trying to buy AND save 10% of what they make on top of that (1st principle of wealth).  

I took it as a chance to get more rent and placed it on the market and had it rented in 1 day (should have asked for more rent in hind sight). 

Unless you have local boots on the ground, be wary of buying any property sight unseen.  

Then I get to about sight of the house, the neighbors places are all pretty, nice roof (that tells you alot), clean, nice cars.

I would personally not make an offer sight unseen, but that's me.

I'm reading it just because I'm an agent but I feel the principles could be applied to just about any business.

Use the PROFITS - NOT THE PRINCIPLE!

Was just made up numbers, but would gladly go cashflow negative to get 200k in 2 years plus principle pay down.