I filed a formal complaint with the New Mexico Realtors Association and now there is admission of false/altered docs from the sellers.

Now, I haven't had to do it yet as none of my current tenants have reported "non issues", and if someone reports something that turns out to be a false alarm, I wouldn't even charge them, as long as it was done in good faith. 

There is a lot of false information and uneasy buyers right now.

This isn't the first time you've made a false assertion on a BP forum with nothing to back it up, let's stick to facts and information for the readers so that this can be a helpful resource. 

You could have a case based on misrepresentation if the seller, acting as an agent, falsely claimed the roof leak was fixed.

While possible to do after you have many properties where it can be paid off quickly I would not recommend doing it out front. using this method to circumvent saving cash will only lead to over leverage and a false feeling of investing to slow you down later  

Your lack of concern for what your lack of knowledge can do to them, hiding behind the false narrative that you are helping them with your "investment strategy" is going to land you in hot water some day.You don't need to justify your actions to me but let's just hope you don't get put in front of a judge to justify them to the courts.

Unfortunately, due to this false impression, dubious legislation that will hurt small and mid-sized investors (and thereby the cities they invest and renovate houses in) has been introduced.

The hopes are in a few years they'll rent for more and then you can hire a PM then if you need.Just find something as close to the 1% rule as possible (analyzed at when you move out and have it fully rented) and it should cash flow or break even.If you're running absurdly conservative numbers, then sounds like you shouldn't buy any real estate and should stick to a low risk savings plan like a CD, money market, or 401k where things are less volatile. 

In summary, if your goals are still similar to what they were when you bought, the location has potential, better vetting of tenants will avoid evictions, etc. it would make sense to keep the property and see if it can live up to the potential you expected when you bought it.If you think you had false expectations or don't see a probability of recovery, I would also do the renovation and then sell.