One bad tenant or major maintenance expense can cost you $5,000 - $10,000.Your only hope is to hold the property long enough that rents increase or the home appreciates, but even that could take 10 years to balance out the losses you incur in the meantime.

How bad do you want them to move out?

That's the problem because you have no ultimate control of your property and it's a sign that you're treated second class compared to the locals .

On paper a property can look great yet be a bad investment.

If you're in midtown/east Memphis where it's a more expensive area that can be a little more modern/trendy I don't think a horizontal fence would be a bad idea.

There are many reasons why things can look bad on the outside, but they really aren’t.

This being said, if tenants want to get out that bad, let them go.

In this case, since the capital stack includes 70% debt, it's likely that some portion of the income generated by the preferred equity investment could be attributable to UDFI, potentially triggering UBIT.However, the preferred equity in your scenario may be treated differently from common equity, especially since there is no upside participation beyond the fixed return.

I didn't like how I was treated by the people above him. 

Then you can put the 100k in there, and its treated as putting money towards that business (working capital) and no one needs to pay tax on that movement of money alone (though there are tax implications later down the line).