We have sent them little Christmas gifts each year, gift cards for a date.

You're not asking them break it, you're asking them to fix the problem and comply with the lease that was signed by all parties....Try to create a win-win, this will likely work better for you than a win lose type deal...

Some I believe use prepaid cards....no idea how to set them up. 

Our finances currently look like thishigh interest credit card debt -$10,000student loans - around $15,000vehicles - around $25,000 (700 mo.)current mortgage- $100,000 (750 mo.)Salary combined - around $90,000 yr.I am wanting to do something along the lines of the book "set for life"What I would like to do is pay off all bad debt, maybe student loans also.

These vehicles aren't going to tie your assets to a single family property.In no way do I think TKs are a bad thing, I think they are great options for some people and a win-win for investors and TK operators.

I took a risk on an occupied property because there was so much equity built into my winning bid, but I'd generally advise against it.

If you end up in a fight with them, it's hard to "win" in any meaningful sense since they are getting decent-to-excellent legal counsel for free.Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney.

Investing in real estate can most definitely produce a good positive cash flow for you to never work again, if you play your cards right.

I want to take action on these properties and need a way to structure this deal so everyone wins

Junk mail - I get multiple credit card offers every day in the mail now.