It still seems to make sense to do it this way as capital gains are taxed at 15% (vs. 30%+ for ordinary income) and I wont incur the tax liability until property is sold.I am most concerned on how to actually perform this action and if there are any hidden pitfalls I should consider prior moving forward. 

There wont be much other expenses and i live close by so i can self-manage.

The reason im looking for 0 down options is the prop. probley wont be a big discount but if I could get a cash flow with no money down then maybe it could be a win win.

they would rather destroy this country than relinquish power. 

He fully understands I wont be fixing it and it's his responsibility now to get it fixed.

In any negotiation you have to be ready to walk away and if they wont entertain the new price or conditions you're not willing to buy it at the over inflated price either. 

If you are a relatively solo operation 6mo will probably go by fast, but as you get a few under your belt and the cashflow starts compounding, it wont seem like much time or much setback. 

However, if you look at it from another perspective and see how much of the value add that was destroyed during that time, it is actually around 70% --> (195-170k)/(195k-160k).

Sometimes they don't sell because they want to much and wont accept less but sometimes those people will play ball if you make friends a bit.  

If they start destroying your house, constant parties, drug growth and or use, many extra occupants and they are paid in full for the Summer you will not get them out.Its easy to fix a credit report and remove what you want, so do not let them supply a 'special' one.