However I am concerned about getting too burned...I have now had numerous dealing with the sis and I realize she is consumate liar and can't be trusted.thanks all for your quick feedback.would you sell to her and be rid of it - or try to fight those leases and win a sweet 3 family?

If the room rents for $800 on it's own, but you could charge $450 per bed, then tenants win if they are on a budget and you make more money.

Find a partner that lacks what you offer and create a win/win.

Structure everything as a win/win- if you make more money, the contractors make more money. 

If they did it right, without upsetting your tenant, it's a win. 

Asking for a mentor is no more work than asking to win the lottery. 

I never missed a single payment and they made $50,000 in interest off of me over the last year so instead of foreclosing on me recking my credit for the next 7 years and them being forced to sell a house for less than what I still owe, it seems like a great win-win option but I was shot down over and over because the appraisal was just too low.  

If the portfolio pays for itself and you don't have to pull out cash from somewhere else that is a win in my book.

I've run the numbers on a handful of multifamily properties in and around the Bay Area, and Gurbeer is right... breaking even is a win in the Bay Area. 

In Cleveland if you are Out Of State Investor there is no winning.