Individual states and counties have their own unique rules and regulations, with some requiring a 3-day eviction notice to tenants and some requiring a 30-day notice.

@Derek Cheng, Every property in every geography at every stage of a market cycle will be unique. 

If I had to guess, I would say the seller of the first property simply needed to sell fast and cheap for some type of unique circumstance (avoid foreclosure, need to pay medical bills, etc.)Whether this makes it a good deal is another conversation.

Killeen has unique opportunities because of FT Hood.

I've tried researching the topic online, but our situation seems to be somewhat unique. 

Interest will be higher and repayment terms will be shorter.

FHA even has a construction loan - FHA 203K Loan - to help with financing the work needing done and simply adding the repayment to the mortgage cost.

@Forrest Faulconer - Thanks for the swift feedbackI honestly don't have a lot of information about comps in the area because our house is pretty unique to our market (a walk-out basement with a kitchen is pretty unique), so it is difficult to use non MLS tools to tell us too terribly much.

And there are a few companies (very, very few) who penalize their loan officers for loans that sell to fast because as correspondent lenders they may have to repay their premium.

I don't know how many clients I've had come in with a sizeable loss only find out that the mortgage repayment is supposed to be a balance sheet entry and not on the P&L.