Realistically, if rents can't keep up with costs over the longer term, fewer people will buy rentals and there will be fewer options for those who can't afford to or choose not to own a home.

W2 income, rental income, small 1099 income. 

Also - presuming you paid more for the property than was owed on the mortgage due to competition on the auction (several presumptions there) - the previous owners are entitled to those excess funds from the court - which gives them a resource to be able to afford our rental rates. 

I typically do B/C class rentals and flips so I may be in a different genre than you.  

The listing broker is going to try and sell you on paying a price that makes sense given the projected or proforma rental income, a dynamic that is the equivalent of how the listing agent on a SFR might try to sell you on paying a price that bakes in future/anticipated appreciation, or "look at this home's potential!" 

I have experience as an SFR investor (rentals), as a realtor as well as corporate experience in mortgage lending and servicing practices from a large bank - all of which I will leverage to grow my MLO career.

Lower down payment and keep the current as a rental or sell the current property and larger down payment on the new one?

The condo was used for several years as a short term rental.  

I’m currently renovating my house and turning it into my first rental.

I have a rental applicant who has tax ID but no SSN.