With rent at $800, expenses at 50% ($400), deduct the cash flow you are buying with your 40K ($330) and your positive cash flow produced by the property itself is only  $70/month.

He got offendet by my approach to make an offer and told me, i am not in the position to bargain. 

Whatever the case, I agree that safety wise it's not a good idea to enter an occupied house plus I wouldn't want to put us in a position where anyone could accuse us of theft. 

@Douglas Ellis this is truly difficult to answer without knowing your whole position, experience, goals, etc. you can make an argument for each method. 20% down minimum exposure, rent as-is, won’t cash flow as high, but if you can manage and maintain, the product will hopefully run itself with the occasional maintenance call and such.

In other words, agencies are always willing to hire more agents because they are not paid a salary, in most cases.

I've been window shopping a few first position notes but much like U2, I still haven't found what I'm looking for....or can afford just yet!

Then you could form a Partnership and purchase apartment complexes that make positive cash flow on day 1 and if you purchase 32 units you can budet for a Property Management Company and still make some cash flow each month. 

I have an applicant with the following application credentials:550 credit score, two bankruptcies, a foreclosure, moved 3 different times in 2017  Now on the upside:No debt (that seems obvious), earns a good salary, been on the job for 25 years, lives alone, no pets.This person once took care of other family members and no longer has anyone to take care of anymore.

Personally, I want to learn the ins and outs and grow out of the position of being "on call."

If he can not sell it and find you are the lone person interested he wants to take 1st position lend you small amount higher than the market to make the deal.