He is now a competitor in my same market who has 5 units.  

If they can provide just as good if not better a product as the national competitor.  

Perhaps trying new list segments to target people who aren't getting the letters from your competitors.

Back to what @Brandon Battle said, I am eager to learn but would another local wholesaler really want to help another potential competitor? 

Before any rehab, I would recommend to check what your competitors have for interior, how close are they to affect  your area and what are the rents they are asking. 

What are the competitors doing?

The industry will survive without the bailout and there will be jobs either with the newly created company or one of the foreign competitors that builds their cars here in the states when demand for cars increases.

But I would also say, that before you try suing the tenant, I'd take a swipe at the PM first for failing to do his job.If it were me, though, I'd probably just eat it and move on.

A mini mastermind of local investors who are willing to seriously help each other will be the best thing (sorry, can't think of a better word) you can implementI belong to a private one here and we all are essentially competitors in the same market, but at the same time we also all know that there is more than enough to go around so we help each other out.

Selling your franchise is what I would do if I am not energized by my business every morning and excited to compete with the other competitors that are opening up.