Russell,Thanks for the reply- you are absolutely correct and I decided to go with an investment property loan instead of a secondary home loan.

I just need to make sure I'm filling out the Purchase and Sale agreement and Assignment contract correctly for Colorado.

After making some calls to understand who failed to disclose the correct lease agreements, the property manager informed us that she had signed new lease agreements with several tenants after we put the property under contract.

Hi James, Blair is correct in that the agent that sold you the home should be able to provide you with a Market Analysis that shows you all of the recent sales in the area.  

I will add another 15% to that bid for safety and if everything checks out, add two-three weeks on top of the time frame the lender gives you to close the lone and if you are comfortable taking the risk - go for it. 

I would try and get a multi-unit property, although I'm not a US investor so correct me if I'm wrong, but by leveraging it as a 20% down payment, you're able to get a 4 or 5 unit property, which, with the right property, could be a cash flow BEAST, but I would be sure to factor in everything conservatively and definitely keep property management in mind. 

They can also introduce you to their local network and help you course correct before, during and in selling the deal.

I guess I'm not seeing where I would potentially break even.The P.I.T.I. is $665 (correction from $613). 

That would also keep him from having to pay all of those taxes at once correct? 

If they moved themselves, I would contact a local moving company and ask for a rough bid to move a family of this size or a household of your size and then offer that amount to the tenants.Try to deal with them directly and nip this in the bud.