You have a number of issues in your post unfortunately.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Issues keep coming up and the students asked MF Capital to help with the $50k extra the lender is requiring.

And my #1 issue is I don't see any actions to address this in a meaningful, market specific manner. 

As far as their relation with the PM goes, the PM is the agent they used when buying the said rental, agent is local to Indianapolis, as for any form of PM agreement I do not know, it may be verbal, or they have a written agreement.Thanks in advance. 

The issue I see is that market has historical appreciation below average (not bad, but slightly poor).  

Maybe you can relate?

The 50 / 50 split above a 15% LP IRR is also extremely favorable to the GP, and relatively unheard of (at least in the institutional private equity world). 

We have been audited by the IRS recently with no issues.

Tenant is now saying that she’s in a hotel because the issue is getting worse and that the apt has had roaches for “years”.