@Andrew CarlsonSounds like she’s running a business and I bet that’s against your lease agreement.

@Gerard Scranton - we have gone the partner route in similar situations in the past by giving an equity stake in exchange for cash and labor.I would find the nastiest houses in need of work and put up 50% of the combined purchase price and rehab cost and then I’d bring in a contractor partner to bring in the other 50%.

Your best bet to pricing the unit right is to look at the comps and see how fast they've been renting. 

@Mike Moran clarifying question, if this a 1031 exchange? 

Build the property, rent it out for a couple years and then exchange it for other rentals to defer the taxes.

Then each of them could decide to do a 1031 exchange, where they could take their share of the sale, and defer it into another property.

I have also bought from a neighbor and such but unless you have some boots on the ground, your best bet would be finding a realtor you like and/or search the MLS. 

Used a 1031 Exchange, bought it from another investor who could not afford to renovate How did you finance this deal?

Do they have the necessary resources to stay on top of all the tax issues such as 1031 exchanges, 754 Step-Ups, etc.Feel free to share your thoughts or comments.

I bet the filter is clogged