This is an area I believe not often explored and has led many to waste a lot of time waiting to refinance or worst waiting for appreciation, while great cash cow deals pass them by weeks after weeks, months after months, years after years. 

Am I wasting my time by doing this?

I really just want to minimize my loses without having to pay the whole 3 months of rent to buy-out/break my lease. 

No matter what you do, buying a property with a value add component, having ample cash reserves, having good financing and having immediate cash flow will help minimize your risk.Here is an article I put together on what to look for when passive investing: https://www.biggerpockets.com/member-blogs/10145/83067-limited-partner-s-guide-to-investing-in-the-right-deal

Be sure to include a clause about waste disposal and enforce it.

If they want to waste it all that is up to them.

Personally I'd pay off my car note as soon as possible to minimize my debts but that is not necessary.Another resource you might check out is using a VA loan to purchase a primary residence to house hack.

I look at this as a good thing as the unqualified folks always waste a lot of time trying to convince you they can get a cosigner, etc. 

@Timothy Brennan Looking to do minimal work such as repainting, appliances etc.

I'd also think that you can probably find some 80s or 90s housing stock that will have minimal maintenance issues and still give you better returns.