I told her I definitely was not going to pressure them into making a decision, and would just keep touching base with her to see if anything changed.

Being cash flow negative is going to put a lot of pressure on your cash reserves and income especially as an OOS investor.Why not just go for an apartment building close to home with that much capital available, a commercial loan?

My move-out rehab will include: full exterior pressure washing and repainting, full interior repainting, removal of all carpet (and replace with tile), resodding the backyard, filling about 50 nail holes, re-installing hardwired smoke detectors (they removed all of them), and landscaping.

Understand that those same tenants will simply move from one landlord to the next expecting to wash rinse and repeat their extortion tactics.

North Korea is finding that China is putting pressure on them to smarten up.

The PO wants 399k, but that doesn't wash.

If you sell it to him at your discounted rate, and buy something else at a discounted rate, it's a wash for you.

Then, I would take the courses, get licensed, and sign up with a good low-pressure broker that offers lots of education or guidance without eating up all your money.  

That comes from the heart and I don't think I am the one that has the ability to straighten that out.No, the solutions are rather simple and honest: Exit strategy in the event a DOS is called1) Cash it out with personal money and pay off the loan2) Refinance and pay off the underlying loan3) Get the Tenant Buyer to refinance and pay me off so I can pay off the underlying loan (give a "discount" if necessary for him to qualify)4) Get a hard money loan and pay off the underlying loan5) Work out an "assumption" with the note holder (bank) of the underlying loan6) Have the Tenant Buyer "assume" the loan with the bank7) Transfer the Deed back to the original seller and assign my interests to himThere are other solutions, but these are sufficient for this discussion.Now, go wash your mouth out with soap and don't think thoughts like that. ;-)

If done prudently, higher leverage does result in higher returns, and lower leverage results in lower blood pressure.