If you are low on funds, hustle, save, or refinance.

Low pay. 

It seems to me accepting bids for a rental would only benefit the landlord in a very competetive rental market with low supply/high demand where you might find high quality renters willing to oubid each other just to get into a place. 

I know that I would like a tenant pool who is credit worthy, trustworthy, and not low income.

It's a low crime area already but it's extra insurance we like anyway.

One other thing not in my original post, it is understood that an evenutal consequence is that our daughter's basis, when she buys the property, is the low sale amount, which could affect her in the future if/when she sells.It would be better, of course, to die first, and have her inherit the property with a "step-up" basis. 

I've been pre-approved for a 3.5% down FHA loan which is what I would prefer to do because the low money down but with it being an FHA loan the house is going to have to be in livable condition to meet requirements for the loan. 

In my situation (getting 30 year mortgage with 25%) the Cash on Cash return are pretty low.

If so there must be something I’m missing as to why it’s priced so low, otherwise I think your rehab budget is way off.

Some of the materials we choose and asked him to pick up (such as flooring) he replaced with low quality materials, I assume to keep more of our money for himself.