As the state debt grows each year and the population decreases debt load per person will increase while median income will remain flat at best and at worst decrease in concert with the exodus of middle class corporate jobs.

One way I could do that is by only targeting (for example) NYC, Bay Area, Denver, Sacramento, etc, properties with lots of equity that will still be cashflow positive at 7.5% according to some AVM that I'd run on my portfolio of twenty thousand notes where the owner is in violation (they can see it the instant you put it in an LLC, even if currently they don't do anything), those properties thus flagged of course tending to be prime real estate and cashflow cows, and I'd let the "meh" properties remain in their LLC without doing anything.

I do think the market will remain strong for another 2 years so if you can find the money to put into fixing up the home and keep renting it that is what I would do.

If any are trapped, they will place another round to see if there are any rats remaining.  

To assure $200 cash flow, the rent price would have to be $1600/month: half ($800) for reserves/repairs, and the other half used to pay $600 mortgage to allow $200 cash flow remaining.  

At the end of the 5 years, is the purchase option just the amount remaining on the loan?

The remaining $12,900 I would keep as reserve

Maybe 5-10k down, with the remaining payments spread out?

With a fast evaporation rate, this level affects an entire room, carpeting, or cushioning, the wetness has wicked up the walls at least 12”, and there is moisture remaining in structural materials. • Class 3.

In either case, my concerns of the water remain the same, for what it's worth.Again, my investment rules always point to a definite, "No" with any kind of water damage.