If he is working full time on real estate you’ll qualify as real estate professional for tax purposes.

I am in the process of filing taxes.

On your cash flow are you subtracting out what you pay yourself/benefits for you, taxes?   

I'm not a lender but FHA is typically if you have poor/average credit and want to buy a minimum 3.5% down.

Ignore the loan when trying to factor in the possible tax implications as paying off a principal balance doesn't do anything tax-wise.

.• Expenses: Estimate operating expenses including property taxes, insurance, utilities, maintenance, vacancies, and property management fees.• Financing: Explore options like FHA loans, conventional loans, or portfolio loans.• Cash Flow Analysis: Use a tool or spreadsheet to calculate projected cash flow.Based on your estimate of $300 per month in cash flow, make sure to verify that this aligns with your financial goals and risk tolerance.

Second I’d check his credit history with similar thoughts in mind.  

If its a tax deed foreclosure that may be different as typically in most states you would have to go throught quiet title. but if its a mortgage foreclosure you should be able to get title insurance.

This policy should outline your criteria for tenant screening, including credit checks, rental history, employment verification, and background checks.Renters Insurance: Renters insurance provides financial protection for tenants' personal belongings and liability coverage in the event of accidents or damage within the rental unit.

The property is being sold as raw land below its tax-assessed value.