I don't understand why you need to do what seems like extensive work on the HVAC.

They also have a "reserve" fee in which they collect 10% of every credit card transaction and hold it for 90 days before releasing it back. 

I would like to get your thoughts/advice on how to proceed so that I can use the collective wisdom to find the best path forward.

In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name...

Actually you made a noob mistake.If the tenant has $100 on Friday night, if you actually want to see it, collect it there and then.

I background checked extensively, this was a big surprise.   

In practice, the landlording equivalent of "ambulance chasers" will proactively market to renters, offering to sue their landlords over trivialties so that they can collect this funding and profit.Get out of Colorado.

She finally got back to me in December only to notify me that she had retired and that I could come collect my paperwork.

One owner is a wealthy casino owner who collects land and may consider selling but for way more than its worth.

Annual registrations, point of sale inspections, turning a blind eye to the most awful owner occupied housing while being overly strict to investment properties, courts that continue to drag out the eviction process; excruciatingly slow, laborious, and expensive permit processes; evictions that continue to be granted one extension after the next... these are the difficulties you run into in those cities.