I know that a lot of the expenses are nonsense, but I know have to convince the bank to underwrite based on my reworked financials rather than the financials provided by the seller, which is not easy.

But as you know so many people are clueless about how RE works and litigation they will just follow an attorney blindly. instead of working out the situation ...

An investor buying it wholesale will do the same “quick math” and come back with a quick "No" as their answer...Rework the numbers… i.e.

Anything can be a potential deal, if the price is right.The price you negotiated is based on certain scenario: That you can evict the guy within a certain timeframe and that the house isn't destroyed and that it only needs a certain amount of work.You may also have to worry that the previous foreclose may have flaws in it and that a judge could unwind it and say that he still has equity in the property.So, what you can do is rework your offer and offer her a couple things:1.

Taxes are what they are, I have found some in the $2,200/yr but most are above $3k.I will re work some numbers with all of the advice and keep plugging along.

Is there going to be a more robust rework coming soon as well?

No matter how many times I rework my budget, my hard work doesn't seem to be paying off.  

Making out of state investing a more manageable task.The Management, I want to completely rework the payment structure where we only charge for management after we have seen X%  of growth in rental income for the property.

Plus I figure the more I know about the laws and structure of RE work the better investor I will be in the future. 

you could probably leverage that skillset and apply it to RE investors and self-employed RE workers (think wholesalers, flippers, and agents).