They're millennials, and are unfortunately reinforcing a stereotype right now based on their words/actions.2.

You will need to have the lease contract invalidated, either through legal action, such as an eviction, or by voluntarily having him give up his lease through a mutual agreement.

What is the best course of action to achieve my first rental without affecting my ability to get a primary residence mortgage? 

I highly recommend @David Greene's first book "Long-Distance Real Estate Investing" which puts action to the idea: live where you want to live, invest where the numbers make sense.I am active duty military as well, and I live in San Diego.

@Daniel Hillman congrats on taking action!

This is obviously much more time consuming and likely that I'll be paying higher prices (since I'd be viewed as a retail customer).So I guess my question is, is it best to proceed by hiring all the subcontractors myself and finding a PM to oversee the rehab, or is there another way to proceed that I'm not seeing?

Landlord must take reasonable action to fill the unit as well. 

As for the last comment that most threats of legal action, especially those that would be million dollar claims are rare, I would agree with him. 

I’ve been driving for dollars and found just over 70 distressed homes on my list, and all I do all day is try to learn but I’ve just gotten no clue how to take the first action step or what it is.I have no capital to invest (yet) which Is why I figured wholesaling was my best path, but I just really need some help.

He took no further action to tell anyone or fix the leak.Question: We're trying to understand where liability falls in this situation.