Just because a property is clean to be turnkey and in a good area if you don’t know for yourself you can still get screwed really bad.

That doesn't seem to bad to me considering the age of the house. 

Do you have enough liquid assets to cover you in case something goes wrong (like an air conditioner or a bad roof)?

You can get stuck with a bad situation if you don’t.

But it’s the damage and bad living situation they’re causing for my tenants who may decide to leave.

@Andrew Syrios after those I was reminded of another BAD rehab.

And never sign an exclusivity agreement with a broker....bad idea.

Buying a property with bad debt so that when the right property comes along you can't buy it.

@John Hein make sure you pinpoint your ARV probably wouldn't be a bad idea to get a contractor in there as well to give a rehab estimate if you have time for that.

I would be interested to see what MI and OH notes are doing these days.back in the day the bigger players would not even bid on those notes  :)  I don't play in that sand box other than with commercial banks that call me on one off's.. and its has to be a smoking deal for me to knowingly go into a bad situation up front.. that's why I recommend talking to those that do it for a living have their systems in place etc etc.. in my mind small mom and pop investors take a huge risk trying to play the NPN game .. and would be better off finding nice performing notes.. but that's me.