Don't have all of the info needed but looks like after vacancy, capex, repairs and management you are clearing well over 350 per month.

It appears the foreclosure cleared the title as best it can.

If you put it out and it's clearly nothing but a empty bag with some heavy rubble they won't take it, but done this way it works fine.

The situation isn't all clear to me? 

Having spent some time looking over your listing and the Bakersfield market, its clear that at a price point between 180-250K there is a vast amount of supply and homes in the area definitely aren't selling as quick as they are in Van Nuys, CA. 

Does that clear up the financing issues?

I've searched the security deposit laws for Illinois and haven't found a clear answer.  

I hear this question a lot, enough to write a blog post about it: https://www.biggerpockets.com/blogs/8160/70595-i-h...Also, until we discovered our passion for wanting to invest in real estate we really didn't have a clear goal.

Thank you Jonathan, that cleared a lot up for me.

Go for the $$ and not the property to eliminate any guilt you would feel over the previous owner having to be evicted out of her home.This was clearly the bank's fault for the misstep in procedure, so better to go after THEM for payment, not the owner.