Also have to weigh it against the peace of mind. 

That's awesome.You are intelligent to look at your comfort zone and understanding the role debt will play on your personal peace factor being rocked.  

You have to decide where can you both have peace of mind?

Anything you buy, best have 6 months in reserves to give you peace of mind if things dont pan out the way you hope.

Similar units on craigslist are asking $35-$40 now but based on zillows recently sold units, I think my number is more realistic.So - I am stuck mulling over this deal now wondering if I'm in a little over my head for a first deal (some rehab/probable problem tenants), or, if this is actually a good opportunity for me to get into investing with minimal outlay and cash flow on day 1 (or 91, if I can get the tenants to go peacefully and get released after in a relatively short time).

Could you upgrade the property to improve rents / reduce maintenance / reduce vacancies / and even enhance equity during your hold period?

Peace of mind is valuable also...

This always hurt me growing up especially seeing my family struggle while I had many rich families as friends, but deep down I know the pride of being self-made will be the ultimate feeling of eternal peace & happiness.Please DO NOT COMMENT IF you're just looking to increase your post number amount. 

Grace and Peace, -Daren 

I imagine private lenders would prefer the same.In my opinion it's worth the money to set up an LLC for peace of mind alone.