You will soon have plenty of qualified buyers (and some who are not qualified).

However, if the debtor later is qualified under a different Chapter of the Code they may be able to seek further relief from debts created after discharge, ask your attorney. 

.- I will not qualify for a full or partial home profit exclusion as it has operated as a rental for the last 7 years.- I do not wish to conduct a 1031 exchange, preferring to deploy the profits in stock market investments at this time.Are there any other kinds of significant tax breaks that might be available? 

If you used the bank that  have the REO for your financing it might not work in your favor when you make an offer because they already know how much you qualify for or how much you can afford so they might not negotiate. 

You should experience very little maintenance for the first 3 years on this home, which is an important aspect to Turnkey b/c the first few years should be about banking your cash flow, afterall, you are paying close to retail and with that should come less maintenance cost and hopefully less tenant cost, but the tenant part is for the most part, is a wild card as even the most qualified tenant can lose their job, get divorced, married, transfer, etc.So long as the home has what I have laid out in the post, I would go for it.  

That was very helpful.The numbers that I have at this point are as follows...HOA - $30/monthTaxes - $100/monthInsurance - $250/monthManagement fee - $140/month ($1400*10%)Sewer, water and utilities are paid by renter.I'm currently speaking with a loan officer about a cash out refinance to see if I could qualify for one as well as what the numbers would look like.  

If you need help finding qualified professionals in your area, I would try to go to some local real estate investing meetup groups and ask around. 

Send me a message with a list of exactly what your clients are qualified for and I will forward you a list of the properties that will apply.

After this, I decided to go to the bank and show them that I was a serious buyer so I filled out an application to see what i could qualify for.

I spoke to my bank b/c they said the property has to be move-in ready in order to qualify for a loan.