Do I back out and loose $4000 in sunk deposit and closing costs, or do I stick with it and rent it out?

property like that you will be lucky to collect rent 50% of the year  constant turn over etc.. you will LOOSE Money why would anyone sell a performing asset like that for 20k ??? 

@Tim Woosley and yes, the seller is legally bound to sell you the house unless you don't fulfill your end of the contract. 

Tenants pay utilities.I'm estimating loosely that between the 3.5% down payment and closing costs I'd be somewhere into it for 50k to get into the property.

With 300k+ people per year moving to Florida, while several Northern states are seeing population decline, buying to hold anywhere around Orlando or Tampa is bound to be a strong long term move as long as the numbers work at purchase time. 

If the market is loose and you're competing against comparable rentals, I would probably wait until the work was done.

Tacoma itself is growing by leaps and bounds, so I think it’s a great place to hold rentals.

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.

I use the "loose lay" type that is thicker but doesn't need to be glued. 

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.