Other wise you get into a situation where a partial payment will delay your ability to start foreclosure.

Minimal debt (nothing so bankrupting as student or medical debt), currently a low cost of living, and the job I have at the moment pays well. 

And you're right about the flood zones, very minimal to zero flood zones in Indy.

You seem like someone who has kept it well-maintained, which should minimize the need for excessive repairs and allow you to set aside more of that 50% rule money towards future cash reserves.It sounds like it's in a good, rentable neighborhood.  

I've read IRS auditing guidelines (they're on their web site) and these specifically state that managing rental properties should be assumed to require minimal time.

You can only charge the tenant $10 per month plus $5 per thousand gallons, and depending on your locality possibly a minimal fee for reading the meter.

Without taking on some sort of risk, more often than not, your return will be minimal.

In my experience, Section 8 involves a lot of extra paperwork and may cause delays in placing the tenant and collecting rent.

The trick is to reinvest it to delay paying the taxes (or live in it for 1 year and avoid paying capital gains tax if it sells under $500k).

.), but I fully agree with @Joe Villeneuve. 120K equity to get you $100 a month CF plus whatever minimal equity your gaining doesn't sound good at all to me.