Any thoughts or tips for how to pursue an initial investment property in this scenario?

Probably will be cheaper than a lot of financing options for the rehabber and no initial cash outlay so it can be attractive.  

I suppose one could use a mechanics lien to initiate foreclosure? 

We have a paragraph "REPAIR AND TENANT MAINTENANCE OF PREMISES" dedicated to this purpose and list a number of things they are responsible for, and have them initial that paragraph and an addendum in the lease that lists a variety of repair costs if they are the cause of damage. 

Are you aware of the organization initiated this week in New York to address grievances against AirBnB's illegal VR offerings?

You get 75 mortgage and you get your money back- You make money in the spread between rent and mortgage and you have 75 to invest again- every 6 months you buy a property reinvesting and refinancing the same 75- meanwhile the properties you initially purchased increased in value and your mortgage balance decreased ... 1 to 5 years later (depending on the market increase) you can refinance again on the same houses...

The deal analysis spreadsheet is a good starting point to work out costs and initial capital needed.

That being said, if you truly could make even 40K profit plus initial investment back, I would do that and then look to leverage that profit and initial money into two or possibly three more buy and hold properties.

My attorneys in FL and NJ didn't charge me for the lease or the initial consultation.....they said they knew they'd get my business eventually, and they did :)

I send the contractor in with my initial Scope of Work statement, from my walk-through, estimate those costs and tell me if there is anything else that will have to be done & those costs.If the estimates come back outside my contingency, I can try to renegotiate the price, based upon those expert findings, or I can terminate the contract, only losing the small option fee, which was non-refundable.Since you took snarky in stride...here's a look at how I break down the house on the initial walk-through...