I recommend shopping around the local banks for terms. 

Most likely the loans have a “right to call “ clause, which means technically the bank can require you to immediately pay off the loans when you transfer ownership.

On the flip side of that I don’t believe in failure and I refuse to fail but at the end of the day I don’t know what I don’t know.As a first time rental owner I was wondering is there any advice for me for investing in this type of neighborhood and dealing with these types of tenants.

If you are buying to keep as a rental or to sell under owner financing, you will want to work with a bank that does not require a seasoning period.

In terms of financing, I'ver heard small local banks and credit unions are the best to find flexible options?

Do I just pay off to the bank after I receive the payment from buyer?

You can work for a bank that provides the majority of your leads with the in-house customer base.

Hey there -- if you have any questions, my background is in real estate investment banking, REITs and equities trading.Cheers!

Speak with the owner, and see if he/she would be willing to do a rent-to-own or just act as the bank until you can acquire a loan.

If you have 50k in consumer debt, a bank is usually going to look at the total amount and use ~3-4% of the total as measurable debt service.