@Eliot M.Your last option would not be very desirable to the owners, as you've said that the house has been an emotional drain to them, so the idea of enduring a rehab sounds like a bit much.Do you know what is causing their stress with this property?  

So what happens is when you have real damage that a private citizen endures they are the ones filing the complaints I have never seen a bulliten or anything from any of the 3 states I am licensed in about turning in wholesalers or anything like that..  

I had no idea water polo was such an endurance sport, didn't even consider a real sport in my book, but watching some of it, looks like those guys get a real workout!

Success is guaranteed to those who endure, keep at it!

So, watch for external obsolescence in an area, good locations near major shopping areas, good schools or near hospitals are usually a plus that will endure with time. :)

., Your story also shows why REI is not for the feint hearted, but IS for the endurers.  

The article is titled Myth Busting:It's not a highly technical notice, but in case the title alone cured your insomnia, I'll sum it up:- The advertised benefits of elastomeric roof coatings (shingle paint) are largely anecdotal and have not been investigated in controlled lab environments- There are no ASTM standards for field applied roof coatings.- Application directions require a clean dry roof.  

@Michael Lleverino,It is my opinion your idea is just setting you up for a lot of unnecessary stress and possible failure.There is a very long list of other options for you to consider that can increase your chances for enduring success and lower your stress level.

The valuations of your SFRs may have peaked but there are many multi-unit (preferably in non-rent control areas) where rents are way below market because they were self-managed by the owner...we just closed on an 8-unit building in La Habra....current rents are $8,500 a month...paid $1.4mm...but will increase rents through our property management company to $10,00 over the next 18 months (rents were not raised in some cases for 10 years) and that will put us at $1.8mm or so using current GRMs and Caps...economies of scale and no one is building affordable rentals in SoCal right now so this product will endure.

Rewarding the investor well today will better pave the way for an enduring partnership.