@Krishna Rana- welcome ..one of the best  1st steps to take will be to get pre approved for a loan for a hypotehtical  purchase scenario ...even if you arent ready to buy ...this will help  educate  and organize and prepare yourself ...good luck  ( plus its  free )

If you took a $100,000 loan at a 8% interest rate, you would owe a total of $8,000 in interest.

I am considering selling the place, but not sure if I should given that I have a 142K loan in place with pre-payment penalty, or if I should just see this eviction through and just try my hand at getting another tenant in there vs possible lease optioning the home out. 

Sound like a good idea or would you guys recommend doing a home equity loan and leaving the rate and payments

Some loan options are:If you're looking to buy a property that's not move-in ready: You can get a fix and flip loan for an investment property with up to 90% of the purchase price and 100% of the rehab budget with up to 75% of the ARV.

I would also be using the VA Loan. 

One way we do that is by pulling your credit report (but only after you’ve filled out our full loan application and agreed to our conditional terms).

You're already in a cashflowing market, find that 3-4 unit and house hack it with 5% down conventional (borrow the other 95% LTV loan to value) and make sure the numbers work before you get into it.Even if they dont work while you're living in unit #4, you can hypothesize the proforma cashflows with your unit's income upon your vacating that unit after month 12.

@JoJo Diego What he means is after he purchases the house and makes renovations using his own money (no bank loan),  after he is done with renovations he'll go to a bank and apply for a loan (refinance). 

15yr Fixed equity loan base rate could be as low as 10.25% at 100% loan to value, with a base APR as low as 10.25%.