If the income covers expenses, debt service, etc. and still leaves a profit, and cash flow is your goal, that would be a fit in my book.If you're seeking equity, and have cash to put down on it, it could still work.Sorry to be non-committal, but these are questions you need to ask yourself: what are your goals for his property and does the overall situation meet those goals?

FMV: $215k, Outstanding Debt: $150k.

@Curt SmithThank you for the comment, I understand eliminating the tenant paying for repairs and any type of so called service to the seller.I am meeting with 3 real estate attorneys over the next week and am waiting for a couple others to return calls.My goal is not to break any laws but merely get a deal so I can get out of the rat race and start building my empire.

I think before housing can truly take off something has to be done about the following three issues affecting millennials.  1) Large amounts of student debt.  

I had a lot of debt and my score did not go down much.

I've lived in the home for the required 2 years and have well over $100,000 equity, so if I'm not mistaken, I can sell and reduce my tax burden by eliminating capital gains taxes.   

Trillions of dollars in debt and still no sign of inflation.

Should I attempt to pay off more of my debt before I attempt to purchase something? 

(both are less debt service, HOA"s, property mgmt, reserves, taxes, insurance, etc) Cash Flow/numbers on both seem to make complete sense.  

I would pause, review my holdings and debt, redo my calculations, and proceed based upon what the data says.