Door knocking is good too ( time consuming i recommend doing this with properties you really want and know could be a gold mine). 

I have been in the construction business since I was 17 including those college years.  

Sure you can buy it but I believe that would include any liens/mortgages that are also attached.

I don't see someone buying this type of property when there is not much money to be made even after you put in and fix it up it would be worth about 75,000 and the note needs to be paid which only leave 7,000 profit which doesn't include closing costs and of course anything I could scrape off.

@Charles Worth,Just curious as to why you think it might not end well.No investment is guaranteed to produce a return and all investment involves risk, especially the risk of loss including, but not limited to, the amount invested.

Where I live, Wells Fargo 'residential mortgage' will include 75& of the rental income towards the Debt/Income ratio in the case of a new purchase.

There are a number of people who fund these types of buys that are legit including some of the better known people on here.

We are currently paying off the last bit of debt (not including a auto loan, which if that will hurt us please let me know) we have which should be done by November and then we want to go straight into our first investment.

I would include clear language in the lease that states their responsibility for the lawn & snow.

It includes a both a year-by-year mode (10 years); and a month-by-month mode (24 months) designed with re-habbers in mind.