Low-cost of living, plenty of land, great amenities and food, relatively safe, and in an economically strategic trading location. 

Food, Gas for the car, insurance for the car, clothes, utilities for the home, Rent or Mortgage?  

It's in an C neighborhood, and located about 75 yards away from non-profit organization which gives food to the homeless, and has 4-6 people living on the corner at all times.

The owner still lives there and the new lien holder has to evict to take control of the property.

It always ends this way.IMO, even if the economy is sluggish, asset prices should rise and inflation will come to commodities, food, sundries, and RENTS.

Have you been in contact with the first lien holder?

Now he's increasingly hostile (cursing all the time, spitting right in the middle of the living room, trashing my food, etc..).

I stopped eating out and made food at home.I went the live-in flip route and it worked out.

However, for buy-and-holders, the opposite may be true.

I did the inspection and found the apartment to be trashed, cigarette butts everywhere, 100s of containers and packaging from multiple drugs, a bunch of methadone containers with both the tenants name and his girlfriends name on them, gas stove was left on and trash and food is all over the apartment and covering electrical outlets.