I can't even imagine how many levels of complexity real estate investing has, which is where the intimidating part comes in. 

Reading this is like pouring foundations before building a house.

Otherwise you have to compensate her with relocation money....Santa Monica has a chart on their rent control website, and I'd imagine LA does too.

PRe Foreclosures..I imagine that's where the owner can sell the property before they lose it or are you going through the bank to purchase it in pre foreclosure?

The rehab costs have far surpassed our budget due to some masked  issues(missing copper lines in walls, dangerous wiring almost throughout...all covered with sheetrock) Also, the city is requiring us to pour new approaches at "multifamily" thicknesses; about $9k worth. 

Nothing but problems from these people from the beginning and I don't imagine it getting better.

Not a landlord friendly city, I would imagine Baltimore is similar.

The foundation of the house is solid, but it looks like the garage floor was attached to the outside of the foundation or poured at a different time, because it sank.  

Imagine the increase in your holding costs while your property sits without selling, take that money and put it into fixing this.

If they are struggling to pay rent on time now, imagine how difficult it will be around the holidays.