File a complaint with the PM contesting the charges, setting a deadline for their response, and warning them of a consequence if they fail to resolve this;2.

That being said, I got into real estate in 2004 and everyone warned it was late cycle.

But fair warning: the market was a lot slower paced and it was a whole strategy.

@Victor Sprague give her a written warning that it is unacceptable to behave like that.

Any words of warning should we let them keep paying the note? 

This pretty serious warning aside, if they lend you money, there should be interest.

Quote from @Matt Holley: Warning: I'm going to hit you with some tough love.If PITI is $1,850 monthly, that only leaves $550 - $650 for maintenance, vacancy, capital expenditures, and property management.

But, despite all of these ominous warnings, if you can get one that cash flows something right now, it's usually going to do very well for you in 5 or 10 years with raising rents and appreciation.

The appreciation in the last year is pretty close to what the property was purchased for (I would have to calculate to know exactly, but I suspect the appreciation in the last year slightly exceeds the purchase price).You know the warning about past performance...

The numbers look pretty good but I will warn you from experience- where there is mold there is MORE MOLD.