I'm an expert in the optical industry, which is quickly losing demand due to the progression of technology and online sales. 

I'm still clearing out about $300 a month, but I am losing $200 due to taxes...I definitely need to raise rent.

If keep it at 4% and have a vacancy for a full month, then, you lose.

Am I nuts to acquire a foreclosure without more experience in rehab costs, or do I have enough buffer to at worst learn and not lose my shirt?  

You could save money doing things yourself but you could also lose big if you mess anything up.

Joint venture > Silent money parter would be my two choices.  

If you have a self-directed IRA you could utilize those funds or you can joint venture with an experienced note investor. 

That gets me to my catch 22.My wife and I are hoping to get into VRBO world so we can enjoy and make more cash flow than we are currently making, but I'm wondering if we should put that off 18 months, rent out the property again and then reconvene at a better time or suck it up, lose a few thousand off the asking price and get moving on our goals...Financials - We owe 143,000 on the house (refinanced to conventional from FHA right after the seasoning period), it rents for $1850, mortgage, taxes insurance, HOA is $956, we just sunk $11,000 into carpet, paint, landscaping, replaced a vanity to get it ready to sell and I fear renting we might have to redo a couple of those things. 

You'd lose your stable income and have to pay for your benefits directly.Can you merge your IT experience with real estate in some way?

Good luck with all your future REI ventures!