Not sure if I have a choice in this situation- any suggestions?

There was a lot of smart money sitting and waiting for a pullback in pricing.The main problem that agents are going to have over the next several months, or years, is all of the complainers and naysayers.

My choices right now seem to be walk away and lose the deposits or live with this a$$hole for an unknown amount of time without any income.

The deal needs to be able to stand on its own, and not contingent on everything going right in the rehab, rehabs will always have problems (over time/over budget)  You make your money when you buy so make sure you are buying smart.

@Sri L.Awesome striking and smartly thought in this period of time.

When analyzing a potential deal, which is a better indicator of a smart investment, cap rate, or a cash-on-cash return?

There are some really smart enterprising folks who are making a go of it and are getting ahead on the reservations. 

I mean, I want the property to be convenient to my renters...but it doesn't have to fit my commute time.Buying a primary home that does NOT need work will open up so many other choices for me that will fit my personal needs.

For me the separate investment property was the right choice, when I was ready.   

But if you do not have another place to live, and have the income, I personally don't think selling is the best choice, either.First, it will generally cost between 7-9% to sell ($206k × .08 = ~$16,480), so you would most likely have to bring money to the table.