Sounds like the lender doesn't want to go through the pains of the estate issues, well, they have no choice, it should be pretty easy to get an attorney involved in the short sale transaction and just buy it. :)

These would be my secondary choices due to less potential for appreciation and rental growth in my opinion.

Definitely made the right choice by joining up on this site.

@Eugene LeeBartlett and Cordova are excellent choices. i have invested in both cities myself but not the turnkey route.Good luck !!

That is a bad combo as tenants have no choice but to do business (shop & dine) in these areas which typically have limited options for anything they want or need to do.  

My current co-workers have mostly moved here from SF, NYC, or D.C. where they paid crazy high rents and buying a house wasn't even a thought.With or without jobs in-hand great tech talent is flooding here due to lifestyle choices (many techies like myself love the mountains).

They were my second choice though!

You really have two choices: 1st Be patient and continue to search for the property that works for you as eventually you will find it.  2nd Expand your search to go beyond where you are currently looking in order to find a property that matches yours and your wife's requirements that gets you to break even.  

I guess, given the choice of these three people, 1) your tenant who is late but pays in full and takes care of the place 2) a tenant who doesn't pay at all or 3) a tenant who pays on time but trashes the place and/or is very needy, I'd take your tenant. 

All this said, having your own attorney is the safest route