This property commands some of the best rents in the small CA town it is located in.

All that said, rents have really increased, making more room to creat small multi family product that can command over $800/mo which is kind of a threshold number.

You might be able to command higher rents in the Cinco Ranch area, but much harder to find homes at that price point....unless you are willing to take on a flood project.Even if cash flow is not your goal, you do not want to be dipping into your pocket every month to cover the mortgage, taxes, insurance, etc. 

I suppose I have always viewed anything I bought as a long term investment and looking at the history of the market in Charlestown, South Boston, and Somerville I personally am confident that Eastie will command the same home sale purchase prices in another 5-10 years as the other markets do now.

Unfurnished: Furnished rentals can command higher rents but may experience more wear and tear.

@Nolan Mahoney, 2-4 unit properties can often command a higher premium, in a relative sense, than a single family.  

*This new problem that she is creating, by the way is exactly why you ALWAYS WANT TO GET THE FIRST CALL in regards to issues with your properties as you always (should) want to be in charge of the chain of command.1.Document everything-include dates and issues discussed with whom; you and contractors, you and tenants, tenants and contractors, etc.2.

My clients and I - as investors - love the vacation rental business and tend to invest in high-end tourist areas that command at least 80% occupancy year-round with property appreciation in the 20%+ range. 

So if you find a $125,000 house but it only command $1,000 in rent, why would you buy it instead of a $75,000 house that would do the same thing.  

Potential alternatives:Increase the value of the property somehow to command higher rent, and possibly build this into your loan.