Generally speaking I advise people to take on less debt as they get closer to their retirement age -- it reduces risk, and provides more cashflow -- often exactly what retirees or near-retirees are looking for. 

I could probably sell for 850-900k), but realize that there is a greater profit potential.

If you've got the backbone to hold up to any challenges this situation might bring about, you could potentially get a pretty good deal on the house. 

So, the even if the rent does not cover the debt service you can still potentially qualify. 

@Sumit Kaul- Can't really speak to that market in particular but ways to estimate the potential rent include rentometer.com, zillow.com (rent zestimate), and look on craigslist.org.  

I am looking at potential leads in these counties and would like to start lining up the folks. 

My perception is that there isn't any ongoing damage, just risk of leaking again.

If you are serious and you put the time in and getting into a network is going to get you where you are going faster with less risk/mistakes - then I don't see a problem with it. 

Seek out a mentor who has invested in real estate to offer advice and encouragement.Determine your target market, available funding sources, and acceptable level of risk before formulating an investment plan.

I say this as no disrespect to the people in the trades - their jobs can be tough... only as a note to the risks of doing such work.