Take control of the situation yourself, and if you want her out, then give proper legal notice.  

In the situation you describe you'll have a much great gain than $300K because you'll have 18 years of depreciation recapture to deal with. 

I think I got the best advice I could receive given the situation. 

--How in the world is anyone being optimistic about this situation?

Quote from @Carl Rowles: An interesting situation.

There's also some that I'm very happy with.When vetting a syndication, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.

I hope everyone is well, I came here because I need expert advice from you guys, let me tell you my situation: I have a investment property that i purchased 2 years ago and is valued at 65k that does not have any mortgage and that is already paid off, I want to use that property to buy another one for down payment , the question here is: What is the best way to do it. a heloc or a cashout refinance and why. your response will be appreciated :)

Yes pretty common, minimum downpayment is generally 25% (occasionally that 20% will work) but just depends on your situation.  

What's really the practical situation.** Strictly restricting this for when doing comps between properties in the same sub-division **

(I am not a lawyer so none of this is legal advice but have seen similar situations occur).