That means it does not need to pay the minimum $800/year franchise tax or file the complicated CA form 568 tax return.

This is where things become complicated, she previously used to occupy the unit we are in and had (per her) added several pieces to the exterior (giant urns, other yard pieces) and had lots of stuff in the basement/garage.The previous owner left tons of other stuff behind and we have been working through cleaning it out and/or using what was useful.

Credit repair isn't all that complicated, but its tough.

Seeing that this would be my first investment, I want to minimize complications if possible.I'm going to look up your blog posts.

B) start fresh and if needed pursue our own eviction from a clean slateIf it was only the mother staying at the apartment I would probably be inclined to let her stay, but with the complication of the son staying, and some very unsavory company he appears to keep, we really want to regain possession of this unit and put our own tenant in place. 

Too complicated.

Don't overthink or over-complicate things here.

Short sales take time and they are notoriously complicated and frustrating to deal with. 

It complicates things a bit, but as mentioned above, time is of the essence and if you have found a property you want to offer on, it's too late to shop for a new realtor. 

My husband and I intended to do a reverse 1031/investment exchange that has gotten a little too complicated.