Thanks, it all sounds good as long as I can avoid paying hefty taxes and generate cash flow.

This can provide additional capital for future investments and get the next one.Or evaluating other loan options:Depending on your long-term plans, you could explore conventional loans or portfolio loans that might offer more favorable rates or terms with the new appraisal value factored in.Your decision depends on your broader strategy.

I did none of the work, and hopefully won't have to for a long time. 

Why spend 12% for someone to manage a property in good shape where you just collect rent and respond to an occasional need?

Yes, agree with the above:--good communication with your insurance company--liability insurance-- fencing, signage and safety measures in place

I recommend targeting emerging neighborhoods with strong long-term growth potential, where property prices are still affordable but demand is on the rise.

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

Alot of unknowns as you don't have the ability to walk the property beforehand, but interesting process, and pretty good deals exist there.While the Trustee Sales are cash purchases, there are many hard money options that can turn over the funds in time for the 24 hour funding required to complete the purchase.If you are interested, let me know and I can go into more detail, as well as make some other suggestions for you to consider. 

I would like to find a way to generate additional income and am exploring options other than having a long-term roommate.

AirbnB, long term rentals, how large is the house,  how many rooms... your message should be extremely specific.And do not neglect Pinterest.