(The business is doing well so i thought sell it while it’s hot) While that’s my main focus, I'm also looking for ways to invest my extra income wisely, as I want my money to work for me.

Since you are right out of residency with a good job and not married and no family, you are in a unique spot because you have flexibility right.

This is causing a huge influx of people moving here for jobs.

My question is how can someone be so far off on value and continue to keep their job? 

There's is nothing you can to to force this person to change how they do business.So, start looking for a new PMC and do a better job screening them:)

My thought was to refi one of them and use those funds as a downpayment for a townhome (daughter going to university) and rent a room and my daughter live in the other.

It makes sense because of their population growth and the strong job metrics of the area. 

In my first two years of management, she earned over $20,000 net profit, the property was in better condition,  she could quit her full-time job, and her health significantly improved because she was no longer stressed.

In return, they will be motivated to get a job and pay back every dime owed while lavishing you with praise.

In Columbus, you can still find the 1% rule and there's amazing appreciation potential due to how much population growth, job growth, and companies moving/developing there (recently Anduril just announced another 4,000 jobs coming to Columbus Ohio on top of Intel, Google, Amazon, FB, Nationwide, Ohio State University, etc.).