I asked myself the same things others ask before doing this - I'm afraid a) that I won't be able to pay the rental mortgage, b) that the house will need more work than I anticipated, c) that I won't be able to rent the house, d) that the eventual tenant won't pay the rent, e) that the tenant destroys the property, etc. etc.I was afraid of all those things, and some did come to pass, briefly.

Frank, this is the beauty of seller financing....as long as the houses don't come back destroyed.

After that, I destroy the known world in Command and Conquer and kill zombies in Resident Evil for a couple hours.

Nothing coud be worse than you losing all your capital, and destroying your credit at your age now.

It stresses the pain points of being a landlord (vacancies, late rent, making repairs, tenants destroying property, maintenance expenses and hassles) and the benefits I can provide in buying the house (as-is, quick, cash, hassle-free, etc.)

The only compelling reason to keep it is to preserve your credit, but the practical reality is your FICO score will be compromised (not destroyed) for at least two years.Face the music on the tax due for phantom income via 1099, square your shoulders and keep investing--this time with more insight gained from this experience.

The tennants destroy the property?

Does anyone have any ideas how I may exit this position without getting sued by the bank and destroying my credit?

I have seen both destroy.

The bottom line is that the idiot tenants can destroy any flooring you put in.