We had a discussion with her about this in July of this year and spent 4 hours pulling weeds and correcting the issue then.  

@Tim LaBelle You are correct, we are not quite as agressive as most of the costal cities, but like Rebecca said the North Shore is one of the most desirable neighborhoods in Milwaukee, properties in good condition go fairly fast, typically in days and we have seen some solid appreciation in the last years.

@Ned Carey is correct that there are many properties in that price range that will rent for at least 1k. 

If you have a SOW, I would try to get more bids and see if you can get that rehab cost down so you'll have an easier time of cashing out on the refi.

If my thinking is wrong there then please correct me!

Since you bought the property correctly (Low) you have enough to pay it off and get cash back for the Rehab, Holding and closing costs ($43K) to be covered by the Refi loan of $140K. 

Offer another 1K and walk away if they do not accept other wise you will end up in a bidding war.

If they do, it's probably not done correctly. 

I hope you have documented and can defend thatTake the extra days and do it correctly 

I know there are complications with loaning to an LLC, so is a partnership the correct structure?