I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

I think you’re under a misconception that’s leading you to think you have options you don’t…You say it’s worth $1.1M and you’d net $500k.

Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

The monthly fee for renters ins I thought should be optional as renters insurance is so cheap and I already provide hvac filters. 

So those are kind of my options- rent at a loss or sell for the balance.

Are there other creative options I haven’t considered?

I know about some financing options that i could use and need to learn more about my local market just am scared of risk!

I agree with most—if you're local and familiar with the property's history, self-managing could be a great option!

.: Quote from @Stepan Hedz: Phoenix, AZ, offers a young myriad of options for real estate investors, particularly in the distressed sectors.

Showdigs is another great option for landlords in your situation.