We rented in downtown Sherwood for five months, and walked by the house and neighborhood countless times.

You mentioned not wanting to invest a lot of money, and that's fine, but having additional capital may still be required.  

I've networked with a few investors in town and pretty much explained to them I would be there bird dog as long as they walk me through my first few deals.

Being that you are in Japan that ads additional difficulties.  

Free cash of $1,300/month (the $1,150 you are currently paying in mortgage and utilities plus $150 cash) could then be used to pay towards principal on SL and car not, accelerating debt pay down.78% RR on 20k minus 5% avg SL and Car interest and 4% mortgage interest = IRR of 69%I think (assuming I'm looking at this the right way), using your 20K in cash soldiers to generate additional income is more advantageous than using it to pay down debt.

If it's true I can cash flow there WITH a property manager in place, and it's at least a B neighborhood in terms of safety and tenant quality, then I will run, not walk, to invest there (I won't live there most likely).

Long road ahead but I can't wait to walk it! 

@Michael Brittner we have been hosting a meetup that walks through a rehab of an actual home, next date is Oct 1st. 9:00 am, 178 Enwood, Should be complete, will run through the process and numbers. 

Additional keywords: Indy, Indiana, Indianapolis

Additionally, I've been told ( and read on many sites) that if a junior lien holder is foreclosing... the senior lien is Not wiped out and the new owner becomes responsible for The entire amount owed on the home.