Or are they wrecking it for locals and other investors by creating a frenzy and escalation in wholesale prices...

Could be a good start.Or bad if the place is a wreck.

What is the actual possible loss in dollars you might have to pay if everything is deemed your fault and you have to correct it.What is the cost of hiring a lawyer at this point, and what if any value does he even provide pre-lawsuit.So with that said, I usually subscribe to mindset of letting the car wreck happen and then I start calling the tow truck.

He and his generation of Investors wrecked that for us. :-)If you live there at least 2 years and then sell you’ll owe all the depreciation recapture and only the percent of time you lived there will be capital gains tax free, never 100%.

Seller listed this at $167K, then 70 days later relisted at $152KThis house is a wreck, inside and out.

@Julian Illingworth  talk to your CPA if you did not list these as inventory.... and you only have a few lots to sell.. holding them a year for cap gain might be a good thing.. plus lot values keep rising.I would not subordinate to a builder... that has train wreck written all over it. 

And contrary to popular belief, that foundation is not a tech industry that some see as soon tottering but on a health care industry that continues to grow.Those claiming that a tech “invasion” has wrecked San Francisco might be surprised to learn that of the city’s ten largest employers only Salesforce (#3) and Twitter (#10) are in tech.

I would not even think about lowering rent.If a felon, sex offender, a car wreck, a shady homeowner, a new low-income apartment complex, etc. moves next door, that sucks... but it's not a reason to lower rent. 

My issue is estimating rehab because some of these properties are train wrecks.

I would try to find someone with experience that can help mentor you a bit .. why just start a partnership because you are friends with someone ... it can wreck a friendship faster than anything .. at least with someone else ..its all business ... put in your agreements contract between yourselves exactly what each one of you expect frim each other ...then if either of you dont live up to your agreement .. make sure there are penalties , just like a contractors agreement should have .. i wish you the very best also .. and God Speed to you ..