We have plenty of tenant interest at asking rent price, but I am reluctant to enter the landlord role. 

This area is mostly rough and for only $300 per month the type of tenants you will get will typically be super low income and possibly have trouble paying. 

Obviously there are several issues at play here, as not everything is a true apples-to-apples comparison and it's quite possible that many of these units are rented to family or long term renters, but the discrepancies are off by often $700-1200/mo. 

In a strong local market, income properties are often listed in stating that offers are being taken for x number of days, and acceptance will be x number of days afterward.

One thing we do often, is CALL the previous or 2nd past landlord/manager. 

That puts them in a tough position because they often don't have the resources to continue on their own. 

Doing my homework helped.I once bought a place that was on the market to settle an estate, elderly husband and wife died within a few hours of each other, it happens more often than you'd think.

Does this type of tenant appear standard to the area?

This family member wants to keep his share in the property until paid off obviously, but is afraid of tenants suing and coming after more than just this one property.

You may need a non conforming product which often carry less desirable terms due to the close proximity of the short sale.