.- I was able to get access to private investigator software to find the true owners of these properties since conventional skiptracing produced poor results.  

When you say a man in debt is a slave, are you referring to debt used for personal items, or are you including debt used to acquire income producing or capital appreciating assets also?  

It makes little sense to keep the property in Dallas since it's producing practically no cash flow.

Off market, value adds can produce good returns.  

Hey Hanzel,Multi families are great wealth producing investments and also very long term.

He individual investor should optimize and choose the trade offs that produce the best results (results meaning more than just financial) with the least risk.  

Here the IRS has a reason to challenge your credibility and the credibility of your self-produced numbers.

Like someone else mentioned, if you took concessions for the issue they will produce the documentation and get your case thrown out.You can pursue an as-is sale, make sure you disclose this issue.

If that is ignored, you could file suit and in the discovery process you could compel them to produce financial statements.

It might help you out if you're a hammer swinger type guy who can produce workmen like quality results versus homeowner DIY results.Someone who has been in this business for awhile , and brings a lot more knowledge , and contacts to the deal we'll have a lot better chance at performing a turn around on the property then to someone who is new and inexperienced.