They are not really made to be investment properties, IMO (and clearly the #s don't lie).Have you thought about certain niches like student housing?

The house was just appraised for $116,000 I was initially approved with Quicken and I was in repayment on my student loans for $0 and NOT in deferment.

Sometimes its difficult to see the forest through the trees.I am so excited, this is really a dream I've had since I graduated college two years ago, I have saved all I could (even with student loans) to pursue my goal of financial independence.

No inspector, just renting to students so I thought I could buy some time.  

I'm an engineer too (or rather a grad student in mechanical engineering) and it is far more comfortable for me to talk about that with strangers than real estate investing.

Full time student / agent / office max employee / umpire - referee. 

A few examples I have been theory-crafting are affordable student housing, foreclosure relief programs, and new graduate housing (these are mostly from personal experience, I am sure there are plenty of other markets out there and I'm sure that there are many markets that are yet to be created).

One of my mentors picked up their first major property with owner financing while searching for potential deals to assign, then chose to rent out the 3bed out as 3 student housings.Can't guarantee it would work in your situation, but it might be worth considering, at least.

I'm a veteran, a college student, and a full-time employee.

As long as it is in livable condition you have a place to live and can charge other students dis count rent to pay down the mortgage (it's obviously more complicated than that but it's a solid starting point).Good luck and congratulations for starting so young...!!!