And the biggest problem I had with value was that banks stopped lending on condos cold turkey.I believe SFH's dropped less in value.Dallas proper has added 100K people since the crash, I really don't think there is that much downside in property prices. 

I see the benefits to both you and seller; what are the downsides?

The downside is you will now have to pay PMI.Your missing expenses such as utilities and should plan for some ongoing maintenance and repairs.

Don't do it, it isn't worth the downside with the little debt you will be able to get rid of.

Also it would be wise for me to amend my tenants lease to eliminate the garage access... besides that I am having trouble finding any downside to doing this. 

Downside is that you are never paying down principal since it isn't a mortgage. 

The down side is, smaller rooms, fewer closets, fewer bathrooms, chance of asbestos.

Conventional will allow up to 75% on investment properties, so that's one downside. 

Those people can attest that the opportunity cost of sitting on the sidelines has been costly.Yes, there are still deals to be had, keep doing your research, be consistent and try to get in the game with a deal that meets YOUR desired risk/return criteria, while diligently protecting the downside through adequate cash reserves, conservative underwriting and the ability to hold long term. 

ABMYD (always be minimizing your downside).