Ask a real estate attorney for the state you are considering.But, here are some costs:Unpaid principalArrearslegal fees of the pre-foreclosurehome owner's insurancemoney to the seller for movingmoney to the real estate agent if one is involvedtitle insuranceescrowpre-paidsunpaid property taxesunpaid 2nd loan if it existsunpaid electric billsunpaid water billsunpaid gas billsunpaid mechanics liensunpaid fines for city violationsdeferred roof maintenancedeferred maintenance in generaldumpster to get rid of everything left behind

It's poorly managed and this tenant has sort of been left to his own devices. 

Well, if they see mom happy and dad treating her with respect, then the world remains rightfully aligned on its Axis in their eyes and universal harmony remains in balance.

Deduct for PM fees and the complex  handyman and nothing is left over. 

I spent nearly all the money I have (All in at a little under $35K) on getting that property, but now I want to purchase my second investment property but I only have $15K left.

I choose "none of the above" as I believe you have left off the best option.  

Ottawa's a tough city to get a high cap rate in so the monthly cash flow is typically lower than desired even if looking at a pure rental.I definitely wouldn't say we make a "sh*t-ton of money" :) but we have about 3k/month left over in our budget after all of our expenses.

Unfortunately I left about $2000 in inspections/fees etc on the table, but they are negligible in the scope of things.

I left teaching and got licensed...but I kind of see myself as an investor first, broker second. 

Cons: distance from home, longer to pay down incurred debt from remodelsSelling, Pros: would pay of mortgage plus all the debt ( nothing left over after that), wouldn't have to drive anymore.