So with that info I am deciding to cut possible loss on this transaction. 

I'll get straight to the point. 

If you do 2-3 per month, then you'll cut your time down to 1 - 1 1/2 years (which I think is ambitious for most people).Good luck.

Give them a cut of the margin, agree to front repairs for anything broken, etc.

Turn the judgment over to a collections agency and let them collect for a cut. 

At the moment, we are wondering if the right option is to try and cut bait to get out asap.

In this case, I would say friends are probably better tenants as long as they're aware of everything in their lease and you're straight up with them.

LOL But honestly, if anything, stuff like horse racing etc is the stuff to cut if you truly don't have enough time.

This lets you buy a place with a lower down payment and if done right, cuts your living expenses to almost nothing.

Cash flow is extremely hard to come by around here (everywhere right now), but these numbers look pretty decent ($250-300 "pure" CF, depending how you cut it), even after accounting for $900/yr. in flood insurance (owner currently pays $800).