Won't require much of your time, hire a cleaning crew, do the management yourself (couple hours a week)Just my .02

This means you would now have $50,000 to put against your house which gives you a lot more buying power. 

After they are gone, apply the deposit to the unpaid rent, cleaning, and repairs, and then decide whether to go after them for any unpaid amounts or if you'll just let it go.

Time forgives most (not all) overpayment on real estate because of the power of inflation to destroy debt and induce appreciation.

I wish you the best of luck and success in your investment career.There are a lot of things to consider, and being a veteran, you have access to the VA loan, which can be a powerful tool.

@Michael TaylorI was also thinking the $1500 monthly profit sounds high on a $70k house, but more power to you if those are the numbers!

I have seen the property and it looks like all it needs is a little rehab; paint, carpets, and the yard needs cleaned up.

This just means in some sort of audit or lawsuit, your personal banking records will be needed to show the movement of funds to demonstrate that everything was done cleanly/correctly. 

An attorney will draw up the mortgages and it keeps it clean.

Note of caution; understand your foreclosure laws, depending on where this is in the process, attempting to pull investor ploys without having the ability to purchase yourself as implied under the contract can land you up against federal law, a lender can clean your clock for interference with an insured depository.In other words, investors who lack the ability and intent to buy themselves as stated in a contract with someone in foreclosure should stay clear of any attempt of trying to pull off anything except a true a cash sale.