She insisted that she always paid her rent on time and therefore didn't deserve a 7 Day Notice to Quit.

This is important stuff, and this is an educational forum.Refrain from insisting on and repeating things you haven't thought about and researched yourself.  

In fact he insisted on sitting down with us (a grueling 2 hrs), to review what we have achieved & then sent us a 4 page dissertation on everything we have been doing wrong for 35+ years, even though everything we owned was & is free & clear & I had retired in 1998. 

In 2006 I was living in LA and the real estate prices were going up fast and the mortgage rates were low and everyone around me insisted it would continue because the job market and the CA economy was strong and the weather was great. 

There are lots of those guys on here and at your local REI assocation meeting.The banks won't have any trouble doing a loan to an LLC, but they will insist that the principals of the LLC (you and your friend) personally guarantee the loans.

They insist we are at fault, however we have changed nothing and they are the only place where our new episodes do not show up.

Insist on higher rent because of more people, and bigger deposit, too.

You get the seller (usually a wholesaler) enthusiastically pushing a teardown on any investor who will listen to him, insisting that it's worth all kinds of money in the right hands, downplaying the renovation costs and time and pretending to all kinds of fixer knowledge by self-importantly throwing out things like, "You've just gotta skim coat that!"

This same woman was now trying to sell this property while she was $280K in arrears to the note holder, $13K in taxes to the town, and she was insisting she was going to walk away with $40K from any sale of the property. 

Why do you think sellers insist on this practice ?