Adding 16 small units can be very profitable, with enough profit for all those involved.  

The vast majority of those people are exaggerating their successes.

Im assuming that is what would catch any errors in owner distributions, deposits, profit/loss? 

When the time came to sell, I anticipated a solid profit from the deal.

Should I go through with taking ownership of the property and try to salvage it for profit or do I refrain from even involving myself in the situation as it may cost more than it's worth to save it?

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

They would offer a more hands free approach, but eat up the profit in return.

How do we minimize taxes on the profit we're making on this first home? 

-any major differences among your 4 properties?

Class D Property:This is where we find many older properties of more than 30 to 40 years old, in need of major repairs.